Price Action only Trading

[ElectricSavant]

The trouble I have trading with those lines is by the time I have figured out the direction I have chosen the wrong direction too many times to where I am lucky if I break even by the time I get the surge.

Look at that chart and imagine an idiot like me...you can see where I would choose the wrong direction and need to bail...there must be a better way.

ElectricSavant

Quote from bugscoe:

Using a completely bogus and illusionary concept, a short trade was had right at a previous s/r, 3745.

And we can see how price kept bouncing off of the illusionary 3725 area until it finally broke through (a good long opp)--probably some stops piled up above there as price surged pretty hard and fast up to the previous high.

Lots of good price action on the E/U this morning.

 

[bugscoe]

Quote from ElectricSavant:

The trouble I have trading with those lines is by the time I have figured out the direction I have chosen the wrong direction too many times to where I am lucky if I break even by the time I get the surge.

Look at that chart and imagine an idiot like me...you can see where I would choose the wrong direction and need to bail...there must be a better way.

ElectricSavant

That's where that instinct I believe you said you were looking to find again comes in handy. Also, price tested that level 3 times prior so the probabilities were more for a breakout than a bounce down.

Price has gone on to test that high again, breaking slightly through and bouncing back. Take your pick-- long on the pullbacks or short at the highs.

I don't think anyone discussed time frames prior in this thread. I'm a very short term guy, 30sec and 1min charts for entries so jack be nimble jack be quick is the name of the game for me.

 

[wrbtrader]

ElectricSavant,

The key for you is to determine what type of "price action trading" you want to do and then concentrate on one thing only because there are just as many ways to trade price action only as there are trading via indicators.

Also, as noted earlier, you first need to determine if you want to learn price action only via chart analysis, tape analysis or both.

Thus, as soon as you determine what direction you want to go with, I suggest you start a NEW thread about that one topic because this thread is already too messy unless someone plans on posting consistent charts every trading day to show the merits of a particular type of price action only trading.

In addition, a word of caution about s/r levels or zones, make sure you're using the same tools as the person(s) you're learning it from (e.g. same data vendor, same charting program et cetera) especially if their being auto computed. Further, I recommend only using a few levels or zones per day instead of more to "keep it simple". Thus, too many lines or zones can easily be problematic for someone new to the stuff considering there's so many different types of methods involving support/resistance analysis.

Last of all, avoid any type of "intuition" discussion when using s/r because you don't have the experience level to apply such.

Mark

 

[ElectricSavant]

Mark...Good advice..you are correct on all counts...I hope others read your post and derive something positive from it too!

ES

Quote from wrbtrader:

ElectricSavant,

The key for you is to determine what type of "price action trading" you want to do and then concentrate on one thing only because there are just as many ways to trade price action only as there are trading via indicators.

Also, as noted earlier, you first need to determine if you want to learn price action only via chart analysis, tape analysis or both.

Thus, as soon as you determine what direction you want to go with, I suggest you start a NEW thread about that one topic because this thread is already too messy unless someone plans on posting consistent charts every trading day to show the merits of a particular type of price action only trading.

In addition, a word of caution about s/r levels or zones, make sure you're using the same tools as the person(s) you're learning it from (e.g. same data vendor, same charting program et cetera) especially if their being auto computed. Further, I recommend only using a few levels or zones per day instead of more to "keep it simple". Thus, too many lines or zones can easily be problematic for someone new to the stuff considering there's so many different types of methods involving support/resistance analysis.

Last of all, avoid any type of "intuition" discussion when using s/r because you don't have the experience level to apply such.

Mark

 

[intradaybill]

Quote from bugscoe:

Using a completely bogus and illusionary concept, a short trade was had right at a previous s/r, 3745.

And we can see how price kept bouncing off of the illusionary 3725 area until it finally broke through (a good long opp)--probably some stops piled up above there as price surged pretty hard and fast up to the previous high.

Illusions of course just because you chose them for being so. Next time it will not bounce and you will get the idea. As a matter of fact, 50% of the time it bounces and 50% of the time it goes through those imaginary r/r levels. Do you think someone will draw two parallel lines on a chart and make money? Even a monkey can do it. Yes, you can find many cases where it works and I can find many cases where it does not. You will show those that work because you insist on trading like a loser. For some trading is a recreational activity and they do not mind if they lose or not the margin for the micro-lot. Instead of playing bingo in their local church they do micro-lots.

 

[bugscoe]

Quote from intradaybill:

Illusions of course just because you chose them for being so. Next time it will not bounce and you will get the idea. As a matter of fact, 50% of the time it bounces and 50% of the time it goes through those imaginary r/r levels. Do you think someone will draw two parallel lines on a chart and make money? Even a monkey can do it. Yes, you can find many cases where it works and I can find many cases where it does not. You will show those that work because you insist on trading like a loser. For some trading is a recreational activity and they do not mind if they lose or not the margin for the micro-lot. Instead of playing bingo in their local church they do micro-lots.

It's obvious when you wrote this masturbatory piece of rubbish the illusion and bogus image you held in your mind, to bring you to such a state of ejaculatory ignorance, was yourself.

Mark brought some good info to your attention earlier in the thread. Why have you failed to address them? We're all waiting with popcorn at the ready to hear how a monkey like you made it from the bingo halls:

Quote from wrbtrader:

I'm not going to talk about opinions but I will state some facts. In the past I've moderated and organized different groups involving hundreds of traders that use products like TradeStation, Futuresource, QCharts and so on. I've done several surveys involving why traders lose money...

The top ten list did not involve using s/r levels.

The most common reasons why traders lose money were the following:

* Lack of a trading plan

* Poor trade method (mainly those using indicators and most tended to be inexperience traders)

* Poor trade management after entry

* Poor money management

* Poor position size management

* Under capitalized

* Lacking discipline

* Cost of trading to high (e.g. commissions, resources et cetera)

* Inadequate trading environment

* Inadequate equipment (e.g. trading via a slow internet speed)

I had listed about 50 different reasons along with an "Other" (via a required detail) as part of the poll...s/r levels never showed up by anyone that used "Other" instead of my listed 50 different reasons. In addition, there's been a few surveys (polls) done here at EliteTrader.com that basically resulted as the above.

Further, you said "price action trading is all about swing lows and swing highs". I hope you realize there are dozens of different ways that traders call something a support or resistance and swing highs/lows is one of those ways.

Thus, guys like me that use swing highs/lows as s/r levels or zones would be confused by your statement. Is it possible you're talking about another type of s/r that you feel doesn't have any merits because I myself can list a few type of s/r levels myself I wouldn't touch with a ten feet pole.

If so, please post any example or define the type of s/r levels you consider to be illusions.

Mark

 

[nkhoi]

Quote from ElectricSavant:

The trouble I have trading with those lines is by the time I have figured out the direction I have chosen the wrong direction too many times to where I am lucky if I break even by the time I get the surge.

Look at that chart and imagine an idiot like me...you can see where I would choose the wrong direction and need to bail...there must be a better way.

ElectricSavant

the key thing is K.I.S.S.
http://screencast.com/t/hG9j4IcE3gvC
then
http://screencast.com/t/ewe0yKy0ZYoK

 

[intradaybill]

Quote from bugscoe:

It's obvious when you wrote this masturbatory piece of rubbish the illusion and bogus image you held in your mind, to bring you to such a state of ejaculatory ignorance, was yourself.

Keep on micro-lotting. Also do not forget to show to to physchiatrist the piece you wrote above. He can subscribe the right meds, I did not insult anyone. You are a vulgar loser. People like you are the cause of the low participation in these forums. Only people with severe psychosis like you will stay at the end. Charts are illusions. Of course, people with severe mental problems like you are accustomed to illusions as it is a normal state to them.

Now, plonk...

 

[bugscoe]

Quote from intradaybill:

I did not insult anyone.

Quote from intradaybill:

You will show those that work because you insist on trading like a loser.

Oh really?

The reason people don't contribute is because of pompous dweebs like you who show up professing your greatness at the expense of others.

You've contributed nothing other than to dis anyone who doesn't trade like you because in your little world, what works for you is the only thing that works.

Your intellect is the only illusion present here.

 

[ElectricSavant]

Folks...the intense focus that a trader must maintain is incredible. Consider this thread a gem ...or a treat ...read with humility.

If you trade day-in & day-out and made a living from your profits...in your mind you would continue that focus and could say that you were one of the few that can make a living at trading.

Read these posts as if they are from successful people that you can learn from. It gets a little strong from the pro's but they know what they are doing...

es