Learn Price Action
- Thread starter Dobbes
- Start date
Basically what I do is look for decent/high R:R setups when/if price lines up and you get a signal, start looking for volume hitting the ask (if long). If it comes you jump on board if its not there you back off. If it comes and you get on board and there's no follow through you get out etc.
So in short I start out as a scalp and try to let it grow into a swing taking some off at key pivots as the trade progresses.
So in short I start out as a scalp and try to let it grow into a swing taking some off at key pivots as the trade progresses.
Depends on your time frame.
IF you plan to trade intraday, plan to spend years watching the market in real time.
I suggest that you:
First, go to www.quotetracker.com and download the Quotetracker program. ITS FREE!
Second, go to OptionsXpress.com and sign up for a FREE account.
Third, launch quotetracker and enter your account info. from OptionsXpress in the upper menu asking for your quote source site.
There you go.....
Live charts/quotes and really nice charts.
Next, there is a guy out there who actually teaches price action and much more for free, - go subscribe to:
http://youtube.com/user/SnP500Trader
Good luck
Many ways to learn the price action. One of my favorites is to read it applying a rule that can be stated in two sentences, but to program it in your mind you would need to run it on multiple examples. To gain the insight of it and to apply it you may need to talk to a human.
A story related to the above is next.
An ET member replied to one of my threads on whether a given price at a given time was the top of that day. His post was:
"
My answer was:
Well the last question would be asked of you once you obtain the two sentences and apply them. PM me if you want to know more.
Oh: his answer to my last remark was:
A story related to the above is next.
An ET member replied to one of my threads on whether a given price at a given time was the top of that day. His post was:
"
.Quote from Kevmeister:
Yes, unless tomorrower there is a new top. And that could be the top unless Monday there is a new top. Now if Monday's top is not broken untill 2018 then you could say it is the top. But if Tuesday top is above Monday's top then today is definitely not the top.
Hope this helps.
My answer was:
Quote from riskfreetrading:
Add bottoms to the above language of tops, then create peers among tops and bottoms, and peers among their peers (ad infinimum), and you've got a clearer language of the stock market. Greek philosophers can inspire you in building a hierarchical society of tops and bottoms, at which you and I will lay to take energy out of the plenty of wood which then will become deadwood in support of kings of tops and bottoms.
Does the above resonate with your experience and thinking of the market?
Well the last question would be asked of you once you obtain the two sentences and apply them. PM me if you want to know more.
Oh: his answer to my last remark was:
Quote from Kevmeister:
Yes, most definitely
how can common sense be used if it isn't so common?
that makes no sense?
Quote from gymratnyc:
It's like saying the Trend is your friend
a bipolar friend
Lots of things make little sense. Usually things work -- until they don't. Ironically, you can probably make as much money betting on PASS as DON'T PASS.
The trick is to figure out both sides. Knowing your chart patterns isn't enough, you have to know when they will succeed and when they will fail -- in advance. In other words, the pattern subsequently becomes incidental.