Nothing Beats Price Action, Everything Else is Derivative
- Thread starter MandelbrotSet
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LOL
I'm 44 and started trading when all we had were 12" monochrome green bar charts and nothing else so all I know is price action.
Your still missing my point though: It doesn't matter how I make money because even if I taught you - your still not me and don't see things the way I do and you have different objectives from this business then I do.
I have no doubt that stealth trader (if he's telling the truth about his chart analysis being realtime and not after the fact) is a good trader but I would never trade that way.
I personally don't want a piece of the middle of s /r I want trades that run and run and even if I'm wrong 3 x and right once I still net net with larger profits then a piece here and piece there BUT hey that's ME.
Finding who you are and adapting a style to YOU is half the battle, then and only then can you concern yourself with the tools your going to use to take advantage of your personal strengths and weakness's.
That's why my motto is Live and Let Trade....
Arguing over trading styles is like arguing over sex doggy style or on top.
Who cares and to each their own
Good thread, very true... want to learn price? You have to do the work.... Fire up your printer and make a book of charts, go over them one by one, identify trends, identify the swings within each trend, mark the minor reversals within those trends, mark the major reversals of overall trend, identify and categorize what is immediately to the left of every reversal, identify support and resistance for yourself beyond the book definitions, identify and categorize what is happening with volume at and between these reversal points.... categorize every candle by type, categorize every candle by whether they appear at the beginning of a move or at the end of a move, note how they react Between and AT support/ resistance, if they react at all....look at all these thing in a time scope larger and smaller than what you usually trade, what does resistance look like on the scope you usually trade? Identify a similar pattern on a smaller scope, then go back, what does this area look like on the scope you trade? Was the latest pull back within the uptrend a smooth pull back, or is it loaded with congestion on the smaller scope? Start doing the same analysis with sector and major average indexes, compare them to your stock.... are the indexes at a turning point and/or sup~res? Is your stock at a similar point? How is the stock performing relative to the sector/avgâs? is it making new highs when then sector/avg is flat? Is it weak or strong? (ignore the percentage return since what-ever date... is it breaking resistance when sector/avg is failing to break resistance is the question to ask).
Basic trend and support/resistance in multiple time scopes, and the nuances of how price travels between these points and how it reacts to these points, and even creates these points, all compared to major averages and sector.... and donât be double negative contrarian to sentiment/breadth when they become contrarian.... thatâs all you need.
If the avg/sector is hitting a turning point/support, and your stock is hitting a turning point/support, and your stock is strong compared to the avg/sector, and there is no thick resistance near by (or at least far enough away for good risk-to-profit ratio) on your stock, and market internals arenât contrarian extreme... then go down to a smaller scope, like the hourly scope if youâre swing trading the daily.... does resistance break on the hourly scope? Enter over resistance on the smaller scope, stop under support on the scope youâre trading, target next resistance on the scope youâre trading, trail stop under pivots (like peaks and valleys) on the smaller scope...very simple, its not that difficult once you get it, but you have to stop looking for short cuts and do the work.
Basic trend and support/resistance in multiple time scopes, and the nuances of how price travels between these points and how it reacts to these points, and even creates these points, all compared to major averages and sector.... and donât be double negative contrarian to sentiment/breadth when they become contrarian.... thatâs all you need.
If the avg/sector is hitting a turning point/support, and your stock is hitting a turning point/support, and your stock is strong compared to the avg/sector, and there is no thick resistance near by (or at least far enough away for good risk-to-profit ratio) on your stock, and market internals arenât contrarian extreme... then go down to a smaller scope, like the hourly scope if youâre swing trading the daily.... does resistance break on the hourly scope? Enter over resistance on the smaller scope, stop under support on the scope youâre trading, target next resistance on the scope youâre trading, trail stop under pivots (like peaks and valleys) on the smaller scope...very simple, its not that difficult once you get it, but you have to stop looking for short cuts and do the work.
Quote from Stealth Trader:
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!!).
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
Whoah there cowboy. I don't use chart patterns. Never said I did. You say if I look at weekly charts I'm not a trader, I'm an investor. I think you've missed the big picture.....Excuse the pun.....How many swings of 5%-10% do you get on the back of?
That's what I look for, and they tend to show up on weekly charts a little more frequently than on an intraday chart. And yes, price action is just as relevant on a weekly or daily chart as it is in your examples.
For the record, I rarely hold for more than 4-5 days. If that makes me (and I'm sure a significant number of other users of this site) an investor, I think someone's moved the boundaries.
more on support/resistance in multiple scopes... very over looked in my opinion.
Quote from Joab:
LOL
I'm 44 and started trading when all we had were 12" monochrome green bar charts and nothing else so all I know is price action.
Your still missing my point though: It doesn't matter how I make money because even if I taught you - your still not me and don't see things the way I do and you have different objectives from this business then I do.
I have no doubt that stealth trader (if he's telling the truth about his chart analysis being realtime and not after the fact) is a good trader but I would never trade that way.
I personally don't want a piece of the middle of s /r I want trades that run and run and even if I'm wrong 3 x and right once I still net net with larger profits then a piece here and piece there BUT hey that's ME.
Finding who you are and adapting a style to YOU is half the battle, then and only then can you concern yourself with the tools your going to use to take advantage of your personal strengths and weakness's.
That's why my motto is Live and Let Trade....
Arguing over trading styles is like arguing over sex doggy style or on top.
Who cares and to each their own
Well said
Nice post Spot on Joab.
Yes, you are correct, arguing about trading styles doesn't make any sense.Quote from Joab:
LOL
I'm 44 and started trading when all we had were 12" monochrome green bar charts and nothing else so all I know is price action.
Your still missing my point though: It doesn't matter how I make money because even if I taught you - your still not me and don't see things the way I do and you have different objectives from this business then I do.
I have no doubt that stealth trader (if he's telling the truth about his chart analysis being realtime and not after the fact) is a good trader but I would never trade that way.
I personally don't want a piece of the middle of s /r I want trades that run and run and even if I'm wrong 3 x and right once I still net net with larger profits then a piece here and piece there BUT hey that's ME.
Finding who you are and adapting a style to YOU is half the battle, then and only then can you concern yourself with the tools your going to use to take advantage of your personal strengths and weakness's.
That's why my motto is Live and Let Trade....
Arguing over trading styles is like arguing over sex doggy style or on top.
Who cares and to each their own
But here we're a making a distinction and talking about using a specific type of trading style to increase our profitability, and succeed as traders.
If you want to post serious content along those lines, that would be perfectly fine ... but if you want to continue to call-out and question a poster who has submitted content and has the PnL to prove it, I would sincerely like you to not post [here] anymore.
***
You're like the guy who shows up just to say something doesn't work and then continue saying it after posters show that it does, by word as well as deed.
Well spydertrader claims his style is the answer to all your trading ills. Just follow a papertrader (spydertrader has 2 accounts, one with Mead papers and one with International paper) and you also can get 3 times the daily range, all in all the time, no losers and a picture of some old fool with a ponytail.
It can not get much better than that.
http://www.youtube.com/watch?v=QsJ1PzIsFpE&NR=1
It can not get much better than that.
http://www.youtube.com/watch?v=QsJ1PzIsFpE&NR=1
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