Nothing Beats Price Action, Everything Else is Derivative
- Thread starter MandelbrotSet
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It's cool.
Joab is just funn'in, and nobody is taking him seriously anyway ...
I've already said that st had nothing to prove on the real money account, and if Joab had done his homework, he'd know that too.
These ramblings apply to ES intraday only.
Price, which is the only tradeable, comes from the order flow of strikes on the buy or sell side, some of which are at the bid whilst others are on the ask.
If you chose (wittingly or unwittingly) to assemble this order flow into bars based on volume, ticks, range or 2 minute, 5 minute, 15 minute, then so be it.
This decision does not change anything.
Order flow will continue to flow.
A bit like King Canute and the tide.
If you think that a 15 minute chart slows down the action, then clearly you know more about order flow than I do.
You may have noticed that already there is plenty to occupy our fertile little minds and we have not even arrived at the delicate subject of derivatives.
In fact you may find that if you unravel the puzzle from the beginning (orderflow) instead of coming into the game at half-time, you will not need to occupy/waste your time on the subject that spawned an entire industry ..namely indicators.
Anyway, just thought that I would pass these thoughts along to you-
regards
f9
Price, which is the only tradeable, comes from the order flow of strikes on the buy or sell side, some of which are at the bid whilst others are on the ask.
If you chose (wittingly or unwittingly) to assemble this order flow into bars based on volume, ticks, range or 2 minute, 5 minute, 15 minute, then so be it.
This decision does not change anything.
Order flow will continue to flow.
A bit like King Canute and the tide.
If you think that a 15 minute chart slows down the action, then clearly you know more about order flow than I do.
You may have noticed that already there is plenty to occupy our fertile little minds and we have not even arrived at the delicate subject of derivatives.
In fact you may find that if you unravel the puzzle from the beginning (orderflow) instead of coming into the game at half-time, you will not need to occupy/waste your time on the subject that spawned an entire industry ..namely indicators.
Anyway, just thought that I would pass these thoughts along to you-
regards
f9
The use of Price Action to trade successfully is a universal concept, regardless of the form which it takes. This is the reason I started this thread in the first place.
100% agreement there.
We continue to be in agreement.
It's one of many tools that help the mind to perceive order flow correctly in that moment.
Thanks for posting.
Trading is something we more often than not do alone, and it's good to have the validation and confirmation of one's experience from another person.
While orderflow, as you say, does represent price action in its truest form ... there are many ways of using it (successfully), many types of trading (successfully), on many different levels (successfully), of many different instruments (successfully).
Good trading
Well I'm off to the gym and to do some homework.
Thanks to all the posters who provided content and food for thought to the thread, not only have we dissiminated the invaluable, simple and free concept of using price action as your primary tool for trading, but there has also been a lot of detail and specific examples given supporting the original hypothesis, that nothing beats price action, everything else is derivative.
To anyone looking for a leg-up, my advice would be to pull-up some of the tools mentioned and watch them side-by-side with your regular chart(s) in the comming week(s), keep good notes, and even paper trade them to gauge their effectiveness.
Prove it to yourself, because you are the one who is ultimately responsible for your trading, no one else.
Good trading.
Thanks to all the posters who provided content and food for thought to the thread, not only have we dissiminated the invaluable, simple and free concept of using price action as your primary tool for trading, but there has also been a lot of detail and specific examples given supporting the original hypothesis, that nothing beats price action, everything else is derivative.
To anyone looking for a leg-up, my advice would be to pull-up some of the tools mentioned and watch them side-by-side with your regular chart(s) in the comming week(s), keep good notes, and even paper trade them to gauge their effectiveness.
Prove it to yourself, because you are the one who is ultimately responsible for your trading, no one else.
Good trading.
Price action is 90% of my approach, so I am a big believer BUT the truth is the market must speak to you "your way" and if your happy and making money, then be happy.
There are as many roads to wealth as a man can imagine and you are only truly limited by your effort.
With indicators, without indicators, with volume, without volume.
This is like arguing who's the best golfer.
Some say Tiger Woods other will say Arnold Palmer etc etc - there is no right answer because its ALL relative.
Study attitudes about trading first !
Then find a way to let the charts speak to YOU.
How is so? If you want to have huge drawdown price action won't help you. You need a 30 - 200 day MA cross for that job.
Alex
Quote from Joab:
This is only impressive IF you can do it in real time.
I can give you 100 charts after the fact too
Kudo's IF you can read this well real time!
Joab,
Valid point but I have a question for you.
Why do you think most if not all of the pure price action traders emphasize the years of training required ?
No one said this can change your trading overnight but over the years it most definitely will.
Instant gratification in daytrading does not exist, period.
NN
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