Price Action. Please clarify something for me

So you liked it ...

Amazon's reviews are contradictory, but all agree that the book's language is difficult to comprehend. Somebody gives an example:
  • "Modify personal style frequently as skills grow. Experience awakens fresh tactics. Trading rules should not strangle fresh ideas. Update them to incorporate your trading evolution. Decide where to place focus at the beginning of each market day. Choose wisely and setups will explode as predicted."
This book's table of content looks interesting.
Quote from resinate:

I think the book "The Master Swing Trader" by Alan Farley does a great job with these concepts.

http://www.amazon.com/gp/product/00...f=pd_bbs_1/103-4525381-0451829?_encoding=UTF8
More...
 
Using price only, you will observe price channeling up or down (eg YM). Each upmove or downmove ending with a BO into the following on contra-move.

Gyrations: it is as simple and as hard as that.
:)
 
Quote from sgsaxton:

Thanks for taking to time to enlighten me.
Is there a source where one could learn more about this?
Generally speaking, are moving averages and trendlines considered indicators?
The reason I ask is there seems to be two schools of thought on how one should trade; with or without indicators.

Regards,

steve
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Steve, I'd suggest www.hardrightedge.com

When I began trading on a more technical basis, this site was the main one that taught me to see these types of things. Check under the Traders' Wheel section.
 
Quote from sgsaxton:

Thanks for taking to time to enlighten me.
Is there a source where one could learn more about this?
Generally speaking, are moving averages and trendlines considered indicators?
The reason I ask is there seems to be two schools of thought on how one should trade; with or without indicators.

Regards,

steve
More...

Steve,

If you can get a good handle on much of this, then you will be able to see the value of indicators as useful (sometimes secondary tools). Read and re-read a few of these posts, and watch price action. It will come, with work you will start to get it. As a relative newbie, it's a little hard to describe, but when the pieces start to come together, it's a rewarding experience.

gordo
 
Thankyou each and every one of you, this thread has turned into a real gold mine for me.
I've been trading for a while now with a degree of success, here and there modifying/changing my methods but always felt that I really don't quite have a handle as to what is really going on.
Funny thing is, is that, I could probably come up with a half dozen new ways to trade the market within a few days but still, there would be nothing of any real substance behind these methods.

Lately I've felt that to have any sort of long term consistency I would really need to learn the basics of market structure and price movement. The trick is to find a good place to start.
Thank you all again.

Steve
 
Steve,
If you are attempting to learn more about <b>market structure</b> I would suggest you take a look at the Market Profile methodology. It takes a different perspective than most technical analysis methods but does a very good job of logically structuring the market in a statistical manner from which you can observe and analyze.
To learn more about <b>price action</b>, you should check out MarketDelta (www.marketdelta.com). It does a nice job of breaking down the price action and order flow and allows you to concentrate on the volume coming into the market.

Make a Great Day!
 
Quote from sgsaxton:

Thanks for taking to time to enlighten me.
Is there a source where one could learn more about this?
Generally speaking, are moving averages and trendlines considered indicators?
The reason I ask is there seems to be two schools of thought on how one should trade; with or without indicators.

Regards,

steve
More...

1. Moving averages are moving trendlines. Hence they are different forms of the same thing. If used to verify what you think you see in terms of trend or trendlessness, they are not "indicators" in the usual sense of the term, any more than a barometer is an indicator of the weather you are having.

On the other hand, if you create an elaborate system based on MAs with criss-crosses and triggers and divergences and so forth to the extent that you focus more on the MA than you do on price, then one could argue that the MAs have become indicators for you.

2. Go to realitytrader.com, scroll down to the links at the very bottom of the page, and click "free lessons".

3. Do a search on ET for posts by "Threei". This is the nick for Vad Graifer.

4. Buy, borrow, or check out of the library Graifer's book, Techniques of Tape Reading (not the workbook, though that will also be eventually helpful).

5. Avoid Alan Farley like yellow fever.
 
Is there a source where one could learn more about this?
More...
If you're interested in pv analysis you may want to check out Nic's Yahoo Wyckoff group:

http://finance.groups.yahoo.com/group/Wyckoff-SMI/

There's lots of info in the Files section. Also search in the group for posts by David Weis, who wrote the middle section of the book "Charting the Stock Market: The Wyckoff Method". Also posts by CofferSpeculator and Pete_cm are good.

There are also good threads here on ET in the Journals section on pv by dbphoenix:

http://elitetrader.com/vb/showthread.php?s=&threadid=29005&highlight=price+and+volume

http://elitetrader.com/vb/showthread.php?s=&threadid=33766&highlight=price+and+volume

H
 
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