Nothing Beats Price Action, Everything Else is Derivative

[Cheese]

Looking at the thread openers post, it is correct in a reductionist sense that there is only price. So the only thing to follow is the price, when you trade.

1. You can solely follow price in its formations (but necessarily in a chart configuration, such as 1min, 5min, etc)
2. You can look at indicators which offer you prisms of price through which you can indirectly follow the price.
3. You can follow price adding live channel lines to use as a perceptual guide to BO's (change of direction)
4. You can follow volume which is a function of price. Price can exist without volume (eg an ask and bid price untraded). Volume cannot exist without price (volume is price/prices traded).

But sophisticated and highly accurate trading does require more than price in a sole and only capacity as a live changing number. In particular I refer to connected sequential trading wherein you are buying the upmoves and selling the downmoves as they follow each other (CL, YM, ES, etc), open to market close.

Expertly using channel lines and certain aspects of volume in certain chart configurations, turns you into a lethal money making machine.

 

[HolyGrail]

Quote from riskfreetrading:

Do not go. You made many insightful comments. Other people read what you wrote. Ignore them.

PS:

1. Mandelbroset=HolyGrail?
2. HolyGrail is a liar (I mean real liar against facts, and he did not retract his lies identified with published numbers)

Evidence is here:


http://www.elitetrader.com/vb/showthread.php?s=&threadid=99143&perpage=6&pagenumber=227

http://www.elitetrader.com/vb/showthread.php?s=&threadid=127201&perpage=6&pagenumber=4

Speaking of LIARS.

Post your actual trades THAT YOU say you made.

Yes, you are the LIAR, BUT WE ALL KNEW THAT.

 

[Stealth Trader]

Quote from Stealth Trader:

Don't make me regret this.....as my tolerance for ET silliness is about at its limit.....

http://www.elitetrader.com/vb/showthread.php?s=&threadid=99119&perpage=6&pagenumber=4

http://www.elitetrader.com/vb/showthread.php?s=&threadid=125517&perpage=6&pagenumber=5

If anyone is so inclined, search my name for more postings on my madness and chart postings. Naysayers without P&L's need not apply. I simply do not care what "works for you;" been there, done that. IOW, no proof, no merit.

A quick markup of yesterdays chart.
http://i27.tinypic.com/4l3et.jpg


st

I have received several inquiries on the chart that I posted in this thread previously (as quoted). As such, I have added more information to the chart which explains further what I am assessing and on the lookout for in real time as price is building the bars.

Everything referenced is within the marked yellow circle as shown on the attached chart.
http://i28.tinypic.com/vpdxlj.jpg


st

 

[Stealth Trader]

Quote from Stealth Trader:

I have received several inquiries on the chart that I posted in this thread previously (as quoted). As such, I have added more information to the chart which explains further what I am assessing and on the lookout for in real time as price is building the bars.

Everything referenced is within the marked yellow circle as shown on the attached chart.
http://i28.tinypic.com/vpdxlj.jpg


st

Edit 1: Getting dyslexic in my old age………..G on chart should be LH……not HL.

Edit 2: For reference, the bars on the chart are 10K constant volume.......note how time based bars will not allow you to see the clarity of price action 'AS EXPLAINED' when compared against CVB's 'AS SHOWN ON MY CHART.' Not an argument for CVB's versus time bars, just an explanation why I personally do not use time bars for trading. Therefore, I don't need a line of reasoning of how time bars "work for you." One, I don't care, and two, that's not the topic of discussion here. I thank you in advance for acting accordingly.

st

 

[Cherrypicker]

Quote from Stealth Trader:

I have received several inquiries on the chart that I posted in this thread previously (as quoted). As such, I have added more information to the chart which explains further what I am assessing and on the lookout for in real time as price is building the bars.

Everything referenced is within the marked yellow circle as shown on the attached chart.
http://i28.tinypic.com/vpdxlj.jpg


st

Trust a day trader to go and pull apart a perfectly good head and shoulders pattern. You guys put in far too much effort for me. I'll just be over here in the corner looking at my weekly chart.....

 

[NakedNote]

Quote from Cherrypicker:

Trust a day trader to go and pull apart a perfectly good head and shoulders pattern. You guys put in far too much effort for me. I'll just be over here in the corner looking at my weekly chart.....

A pattern is nothing but a summary of price action.

Some us are interested in the actual paragraphs of the story and not just just the summary.

NN

 

[Stealth Trader]

Quote from Cherrypicker:

Trust a day trader to go and pull apart a perfectly good head and shoulders pattern. You guys put in far too much effort for me. I'll just be over here in the corner looking at my weekly chart.....

LOL!!!!!!! For the record, I do not trade chart patterns.......anyone truly honest with their assessment know that they work maybe 50% of the time at best (I know, YMMV!!). That being said, smart money will typically pick your bones clean like a team of hungry piranhas feasting on an elephant trading those textbook patterns. Me, I prefer to stay out of their way and am content picking up what falls out of their pockets.

And if you are looking at weekly charts, you are not a trader, you are an investor!!!! For long term retirement portfolios, it's P&F all the way for me, Dorsey style. Oh wait, that can't work because there is no volume on P&F!!!! Ah crap.....see what you went and done......now I have to go back to the drawing board and start all over!!!!!! Damn!!!!!


st

 

[MandelbrotSet]

Quote from Stealth Trader:

Edit 1: Getting dyslexic in my old age………..G on chart should be LH……not HL.

Edit 2: For reference, the bars on the chart are 10K constant volume.......note how time based bars will not allow you to see the clarity of price action 'AS EXPLAINED' when compared against CVB's 'AS SHOWN ON MY CHART.' Not an argument for CVB's versus time bars, just an explanation why I personally do not use time bars for trading. Therefore, I don't need a line of reasoning of how time bars "work for you." One, I don't care, and two, that's not the topic of discussion here. I thank you in advance for acting accordingly.

st

Thanks for posts Stealth Trader, there's a lot of information in them, and by reading, studying, and then applying them in real-time hopefully some of this might start making sense to the readers.

Once they get a good handle on the mechanics by trading SIM (and can triple their money at least twice) they can start applying the concepts using real money.
***
Here's another thread where traders discuss the use of price action (shown in a multitude of different ways) as the primary tool by which they are able to trade successfully.

Out of all of these methods, the question may arise: Which one is correct?

The answer to that question is: The one that makes you money ... and I don't think ST has anything to prove on that account.

Here's the link. Hope you guys enjoy reading it and applying yourself to the markets for the next 40 hours a week, plus 20 hours to reinforce the lessons doing your homework (until you "get it"), as I do.

Day-Trading 2.0 for small traders - run by jjrvat, one of the unsung talents arount here.

 

[Stealth Trader]

Quote from NakedNote:

A pattern is nothing but a summary of price action.

Some us are interested in the actual paragraphs of the story and not just just the summary.

NN

There are three types of people: those who see what happened, those who can make it happen, and those who say "what the hell happened."

I am in your camp.

st

 

[MandelbrotSet]

Quote from NakedNote:

A pattern is nothing but a summary of price action.

Some us are interested in the actual paragraphs of the story and not just just the summary.

NN

Liteary as well as analytical talent.

Some people get all the luck.