gymratnyc
Kind of early to ask such tough questions. ..
Let me try to answer as i understand price action in my world of a daytrader on a 5 minute chart trading the ES.
Looking at price on the screen your job is to identify what has happened during the day and interpreting that with a view what is coming next. Myself i look at where in my mind the different price levels caused fear and greed within the other traders minds. There are many different players in the game with varied tactics etc but one common thread that runs through all traders heads are those two basic human emotions. That can not be denied.
My job is to "ANTICIPATE" what the other players will do when price does what price will do. I care less WHY price will do what price will do, thats not my problem. My problem is to predict the next level either up or down based on price relative to the fear and greed from others.
Follow?
If i see a trend day as example and notice we have had 2 legs up and with narrow retraces along that intraday trend i am anticipating a 3rd leg as a continuation and might even consider to "add-on" if we get a "HOOK" up past the previous high. A 3rd leg up will cause more fear from those that are in losing trades and might throwin the towel. A 3rd leg up might cause greed in others like myself might consider doing ad-on, others might decide to jump on the trend because the peers are outperforming them. Price action is all you need to be in the other players shoes. Have fun, hope this helped.
Kind of early to ask such tough questions. ..
Let me try to answer as i understand price action in my world of a daytrader on a 5 minute chart trading the ES.
Looking at price on the screen your job is to identify what has happened during the day and interpreting that with a view what is coming next. Myself i look at where in my mind the different price levels caused fear and greed within the other traders minds. There are many different players in the game with varied tactics etc but one common thread that runs through all traders heads are those two basic human emotions. That can not be denied.
My job is to "ANTICIPATE" what the other players will do when price does what price will do. I care less WHY price will do what price will do, thats not my problem. My problem is to predict the next level either up or down based on price relative to the fear and greed from others.
Follow?
If i see a trend day as example and notice we have had 2 legs up and with narrow retraces along that intraday trend i am anticipating a 3rd leg as a continuation and might even consider to "add-on" if we get a "HOOK" up past the previous high. A 3rd leg up will cause more fear from those that are in losing trades and might throwin the towel. A 3rd leg up might cause greed in others like myself might consider doing ad-on, others might decide to jump on the trend because the peers are outperforming them. Price action is all you need to be in the other players shoes. Have fun, hope this helped.
