Price action: The holy grail?
- Thread starter TTT
- Start date
D'OH! Where have you been? (The Simpsons reference in case you didn't catch this.)
A trader's objective has always been to have his profit/risk position "in tune" with the market. "Price TA analysis" is the best (only?) way to achieve it.
"Price TA" indicates what players are actually doing with their money. All other considerations are mere folly and distraction.
IOW... are "they" [the market] buying or selling? How can you tell? How should you play it with that info? Get a handle on this and the market becomes like "finding money in the street".
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I only know one thing. I am immensely happy, I have not yet put all the knowledge I have acquired in elitetrader to practice, but I sense that I am on the right track. I have spent thousands of hours looking at graphics and finally I see the light now. I can only say one thing. Thank you, thank you, thank you, thank you very much everyone.
I would define price action in even simpler terms. Trend, support and resistance are often subjective and open to interpretation, depending on your time frame, market conditions, mood, etc. etc. So you're likely to be sentenced to hours on end living with charts and struggling with every buy and sell decision.
But what current price, or target price, is in relation to what price was X bars, or X days ago, or X minutes ago, can be more easily quantified, tested, and traded.
It isn't at all unusual for traders to start with the most complex, and if they survive the learning curve, end up with simplification.
Sounds like you are on the right track, so just keep going.
Good luck.