Nothing Beats Price Action, Everything Else is Derivative

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Quote from jack hershey:

The DOM is helpful for becoming comfortable in getting a fuller picture of how and why price moves at given times.

All turns are shown on the DOM.

All price changes that will happen in the very near term (within seconds) are shown on the DOM.

Both of these things are important to eliminate fear while trading.

Reading DOM to see turns is simple. Reading DOM to see upcoming price change is simple.

There are other aids that come from the DOM:

Knowing the range of range bound markets.

Knowing market sentiment.

Knowing a price move is going to continue,

Knowing a price move will end in a tic or so.

Knowing how fast the market is moving and why.

Knowing what smart money is doing.

And so much more.
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I don't know Jack Hershey from Adam but I have found that all of the above are spot on.
 
Quote from jack hershey:

And austinp said as well:

"You can see market turns on the DOM before you see the price prints on a chart."

You will see a lot of b.s. on the dome, too. Learning to filter out reality from phantom orders is a mental lag that brings dome action to par with price bars.

When a price bar closes on a chart, it has a ring of finality and decisive truth that no other indication can match. Said simply, reading price bars is like key ingredients to Ragu sauce... it's in there. Everything.

No one needs to use indicators,

but traders are certainly welcome to. No one needs to draw so many lines on a chart it'd give Stevie Wonder a headache at first glance.

All of that extra effort is fine, but it's just extra effort in the end.


While price tells the story on the T&S and that appears on price bars, there is more to price movement than just T&S.

The above statements provide a very good lead in to "why" the DOM is so important. Googling DOM will provide more and from diverse people.

Maybe someday people can get over their fight or flee orientation. The DOM is helpful for becoming comfortable in getting a fuller picture of how and why price moves at given times.

All turns are shown on the DOM.

All price changes that will happen in the very near term (within seconds) are shown on the DOM.

Both of these things are important to eliminate fear while trading. It is possible a trade's feelings of fight or flee decision making come from fear. Probably fear of the unknown.

Th OP has Spyder as a friend and so he is given the benefit of the doubt. He met spyder.

Why not meet the DOM and see what doesn't show on price bars with respect to when price must turn and when price must change.

It is a reading exercise. You read people when you meet them and then you give them the benefit of the doubt.

Reading DOM to see turns is simple. Reading DOM to see upcoming price change is simple.

There are other aids that come from the DOM:

Knowing the range of range bound markets.

Knowing market sentiment.

Knowing a price move is going to continue,

Knowing a price move will end in a tic or so.

Knowing how fast the market is moving and why.

Knowing what smart money is doing.

And so much more.

But you have to give what you read the benefit of the doubt to be able to try it out. Most people are very astute to not use anything I mention since they do not trust the source because the due dilligence they require has not been met.

This is a good way for them to operate. They express the anger of hating which is part of the fight. Fighting is what they do to handle their fear of trusting and their fear of not having their dilligence complete by their standards.

So they see the DOM "lieing" and only the price bar tells the "truth". They do not trust some things that they can't see and they feel that they have to operate in history when the bar is solid and finished. They sit through each forming bar not trusting it until it is done.

What is before price action? A lot.

Keep up the fear. Keep fighting. Dont flee from shouting and screaming at someone you don't trust like me.

Obviously my seeing "me and the ball" as very humorous is just another threat that has to be fought and screamed at. A lousy analogy is a lousy analogy.

The DOM is where you can watch the smart guys take the pants off all the small fighters and complainers who never get out of the trenches simply because they can't think as yet.

I'm not going to participate in this thread further.
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I think the above prattle, was roughly equivalent to my earlier response: "Actually, Jack would be trying to swing at the ball with golf clubs tied to ropes and pulleys and counterweights and feathers and counter-counter weights and block&tackle and levers and a level and talcum powder and granite shoes with iron underwear and binoculars and GPS and radar guidance systems and gunsights and ... ... By the time he was setup, he would not be able to find the ball."

When it comes to anything, Jack makes it 20 times harder than necessary. Why is this so hard for him to see?
 
Quote from jack hershey:

And austinp said as well:

"I'm not going to participate in this thread further.
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So waht are u going to do? Take all your indicators and go home? What a baby.
 
Quote from athlonmank8:

Indicators are 80% useless.

Current price action and previous price levels are all you need.
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With that said....I'm sure there is a select few (probably intelligent people) who use indicators for pure "feel".

Strength is key and can be used for probabilities I suppose. Hence the 20%.

Most people use them for entries and exits....those people are completely fucked

Think of "hard" and "soft" TA
 
Quote from ElCubano:

the only indicator i use is P&L.....now that mo-fo never lies....flip a coin pick a side and monitor the p&l to tell you wether to add or unload....:D
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lol :) That's Jesse Livermore thinkin right there.

Doesn't work on the roulette table though. I've tried it haha.
 
Quote from MandelbrotSet:

Price action always tells you the truth of what is happening in the market, and it is consistent across all markets and frames of refrence.

I've been going at it for 12 hours a day now (partial overnight session and day session) and it always comes down to Price Action in the context of Technical Analysis.

Not only that, but these are the trades that are going to have the greatest breadth and strength behind them, have the greatest probability of a successful conclusion and usually your stop just sits there and never comes into consideration.

Indicators? :confused: ... they tell you what is happening long after price has signaled the move.
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I think that the part about price action in the context of technical analysis is a very important point.
 
The truth is, we learn to see the same things using different tools.

What the dome guys identify and confirm as support and resistance via "walls", etc are likewise visually clear on a bar chart. At the exact-same moment in time, chart readers have seen a failure pattern of some sort and reacted to it accordingly.

When MP volume levels are hit AND price action reverses, the volume players react by taking a trade. At the exact-same moment in time, chart readers have seen a failure pattern of some sort and reacted to it accordingly.

When oscillator levels reach extremes or show divergence AND price action reverses, oscillator traders respond by taking a trade. At the exact-same moment in time, chart readers have seen a reversal pattern of some sort and reacted to it accordingly.

I find that traders learn to make the best decisions using least amount of data input possible. I see traders making more money in less time using little to nothing more than price bar behavior on a chart. That's not to say the same traders wouldn't succeed or fail accordingly if they add more and complicate the picture.

But, less is more in our profession. "One more" bit of information usually leads to twenty data points and paralysis in the end. Superior intellect does not make superior trading results. Simple decisions made correctly and timely make money. I myself make the fewest trading mistakes using price behavior alone. Fewer mistakes = more money made / less money lost.

Every trader makes mistakes, zero exceptions. That's part of our profession as gamblers. Exiting those mistakes and entering the next favorable decision is critical to success. The fewer data points of decision necessary to take clear action, the greater our success will be.

Obfuscate 'til the cows come home. It may very well make money, but the simplest approach using price bars, domes or indicators is the most probable path to success.
 
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