Making money using price action is impossible
- Thread starter college_trad3r
- Start date
Exactly. Price leads all indicators, you cannot have TA without price action.
What is price action? Price action is simply how price reacts at various s/r, breakout pts, moving avgs (for ppl who like to use indicators), etc.
I know how to read price action but I have to agree that its very hard to make money with price action alone, but I do mostly arbitrage so I could care less where price is going the next hr or tomorrow.
Quote from college_trad3r:
So out of this definition follows price action is real-time. This means there are no backtests possible and you have to believe people on their words you can make money with the magical guru-technique of "watching price action"
So you use technical analysis and money management to create a set-up and just price action for confirmation. Sounds to me you're making money not because of price action, but despite it.
If price action can only be spotted in real-time then break down the movement of the so called price action.
An example you have price at 900, it can move to 900.25 or 899.75 the two possiblities of the range. 900 is a support zone.
Those are the only two possibilities when price is 900.
Then you have the frequency at which it alternates between two prices like 900 and 900.25.
frequency and range are the only two possible attributes of price action, if you discard real-time volume.
However frequency and range do not predict movement of price in anyway. Let's take the example price goes from 902 to 900 fast, stalls at 900, and alternates fast between 900 and 899.75. The alternating to 900+ from 899.75 goes faster than vice versa. Does this mean price wants to go higher?
The answer is it doesn't mean anything. If it does go higher it's not because the frequency is faster, the alternating favors one direction, or because real-time volume increases only when the alternating goes higher on a support. It only goes higher because of the support zone.
Technical analysis trumphs price action, and you know it.
Thats tape reading, not price action.
no this is price action, tape reading is watching the tape, or time and sales
but price action is real-time, patterns is just technical analysis that existed since the 1900 when graham traded using them
You're telling me to buy a pullback?
that makes sense, but how do I make money with thatQuote from jonbig04:
lol, I must be a super hero then since I'm doing the "impossible". I keep a journal online as many PA traders do. Anywith with the slightest ambition could easily look them up. Some of the journals, including mine, call trades in foresight for the next day as well as posting charts at the end of the day.
Sorry, but you have to understand how funny this sounds to those of us who do it every day. I wish you luck, but you may want to reconsider
how you can call price action the day before is a mystery to me. I don't know how people keep attributing mystical properties to price action, like foretelling the future, it's not the "holy" grail!
Quote from college_trad3r:
but price action is real-time, patterns is just technical analysis that existed since the 1900 when graham traded using them
You're telling me to buy a pullback?
how you can call price action the day before is a mystery to me. I don't know how people keep attributing mystical properties to price action, like foretelling the future, it's not the "holy" grail!
the "holy grail" is YOU and PA
what do you think it is-- a stochastic or a macd
all indicators move bec. price moves
price doesn't move because the indicators are moving
You dont "call" PA, you trade PA
you are still thinking about what "you" think the market is going to do
you need to do what the market is doing.
how do you do that?
by taking advantage of other traders emotions of course