Price Action only Trading
- Thread starter krtrader09
- Start date
So a swing point could be a reaction to news and not necessarily Technical Analysis...?
ES
ES
The only time I use news in my trading is I make sure to avoid trading during major news announcements such as FOMC meetings, Jobs Reports, GDP report, Consumer Confidence, etc etc. I don't trade 1 hour before or after those reports, mainly because it is usually chaos and logic doesn't settle in until later. For example when the fed announced they were going to buy 600 billion in bonds, the euro/usd tanked 100 pips in a minute before jumping 200 pips the next, and then tanking again 200 pips the next minute, then slowly going up from there.
Other than that I don't use events/news at all. Price is all you need to make a good entry.
Other than that I don't use events/news at all. Price is all you need to make a good entry.
But how can you rely on swing points unless you mark the areas where there is news right on the chart? This way when you scroll back and look at your swing points you can identfy unreliable ones...
Yeah the day before NFP is really dead too...
ES
Yeah the day before NFP is really dead too...
ES
Swing points made by news aren't any more reliable than swing points not made by news imo. If so I would have been a billionaire by now by going all in on those swing points with a low risk and high reward strategy. I trade the forex mostly so maybe it is different in equities. I will trade any swing point if I am going with the long term trend, have a good risk-reward ratio, and have a confirmation of the signal.
A swing point can be a reaction to anything assuming your use of the word news implies anything.
However, lets pretend a swing point occurred via a key economic report being released at 10am est (e.g. consumer confidence report). That's a a reaction to economic event but if you're using a chart to visualize that swing point...you're using TA.
Yet, I do know there's a camp of traders out there (I'm not one of them) that believes they aren't using TA even though there doing chart analysis. In fact, many of EliteTrader's well known TA bashers do chart analysis via the facade "it's for visualization purposes only" while having no impact on their trade decisions.
Therefore, I strongly believe if someone is using a chart for anything...they're using technical analysis because the nature of a chart is technical. However, if someone can make trade decisions without using a chart or doesn't believe in TA...I would then say that's a trader not using technical analysis and shouldn't be using a chart for anything.
However, it can get messy in the definition if someone is using "quote screens only" (no charts) with special tools that show where the key levels "were recently at or currently at"...I would lean to the side that such is not using TA depending upon what type of tools are being used. Therefore, in most cases, using "quote screens only" is true tape reading or tape analysis that's not involved in TA.
As you can see, any of the above is an easy debatable topic when trying to define s/r, chart analysis, tape analysis or TA.
Mark
So this means that if you used a chart for the use of the ATR indicator...your are using TA...? I just want to make sure, since this is the Price Action Thread.
ES
ES
Correct...using the a chart for anything regardless if you plot something (e.g. ATR indicator) on that chart or don't plot anything on the chart...
It's still technical analysis if you're using that chart for any type of analysis even if such does not result in a trade or investment decision.
However, price action only trading (no indicators) can be broken down into two categories...those that use TA and those that do not use TA.
Simply, "chart analysis" falls in the category of TA whereas "price action analysis" can fall into two different categories (those that use TA or those that don't use TA).
Mark
Any kind of chart indicator that requires price is TA. For example:
rsi
ema
stoch
linear regression
ATR
these are all TA. They are lagging indicators. Meaning, the price moves first, then the indicator responds to the price movement.
Price action is figuring out what the current price is doing in response to certain key levels such as swing high and lows and then entering a trade.
IMO a good trader uses both TA and Price action.
rsi
ema
stoch
linear regression
ATR
these are all TA. They are lagging indicators. Meaning, the price moves first, then the indicator responds to the price movement.
Price action is figuring out what the current price is doing in response to certain key levels such as swing high and lows and then entering a trade.
IMO a good trader uses both TA and Price action.
Could you fellah's share "how to trade with PURE PRICE ACTION"..
I guess it is a learned skill. I would like to learn how to do that.
I have read a lot of books...I want to get my hands dirty...and practice.
Can we walk through some trades when London opens? I know many are interested...and if you could just give us a glimpse?
ES
I guess it is a learned skill. I would like to learn how to do that.
I have read a lot of books...I want to get my hands dirty...and practice.
Can we walk through some trades when London opens? I know many are interested...and if you could just give us a glimpse?
ES