Price Action Traders
- Thread starter bearmountain
- Start date
NoDoji, I am glad they let you out of detention, thanks for your detailed response, much appreciated.
Mark, thanks for your reply as well.
It just so happens I ordered Al brooks book couple of days ago, they say its a tough read.
I think the biggest challenge I am having with PA trading is not able to pry loose of my old habit of using indicators. I feel unless I have those props on the chart I am lost without them.
PA trading is hard, constantly thinking for myself rather than being spoonfed by indicators.
The idea of using a EMA sounds good, I think I need some old props in the beginning...
Mark, thanks for your reply as well.
It just so happens I ordered Al brooks book couple of days ago, they say its a tough read.
I think the biggest challenge I am having with PA trading is not able to pry loose of my old habit of using indicators. I feel unless I have those props on the chart I am lost without them.
PA trading is hard, constantly thinking for myself rather than being spoonfed by indicators.
The idea of using a EMA sounds good, I think I need some old props in the beginning...
A quick summary of why you didn't like it, please?
You're welcome.
Al Brooks is a tough read. Start at the back of the book, read the glossary first (or you'll have NO idea what he's talking about in the meat of the book) until you're completely befuddled. This places your brain in a state of semi-coma, which makes you then receptive to the information contain in the first 3/4 of the book
PA trading requires you to stop thinking altogether and to simply let the market take you with it based on what price is doing. The day I can stop thinking and just trade the signals as they come, I'll believe that I've "made it".
This is going back some months. For one, his writing style is far too character-building for me. More importantly, however, and as I vaguely recall, his various signals come at the drop of a hat, in comparison to what I am comfortable with. And if memory serves, there were multiple interpretations of the implication of price action based on just a little too much nuance for my taste. And finally, there is the standing matter of my not being able to wrap my head around using 5-minute charts for very short term trading. Perhaps I am being unfairly negative. I just didn't like it.
What did you like about it?
Quote from LeeD:
Mark, do you use time-and-sales or market depth? Maybe you are a time-and-sales trader
I have a lot of charts of different types of trading instruments on my screen on my monitors (no more than 10 charts in front and a few others in the background that's minimized), global economic calendar and other resources. Thus, I'm not dependent on price all by itself and nothing else but I do not use indicators, volume, t & s nor market depth information.
I trade the Russell 2000 Emini TF but I have on my screen charts of emini futures, treasury futures and yields, oil futures, metal futures, eurex/euronext futures, U.S. dollar index and VXX exchange traded fund.
Mark
Thanks for the mini-review. Gotta be quick, nursing a short. Never read it. Won't, now. Didn't know it was five minute. Puke!
Two questions.
First, if you had a valid setup in TF but it was not corroborated or confirmed by any of the other markets or sources of information that you follow, would you still take the TF trade or would you pass?
Second, if you did not have a valid setup in TF but all of the other markets and sources of information were suggesting an impending move in TF (based on whatever criteria you have established for yourself), would you enter TF or would you wait until you had a valid setup?
(Do you see where I'm going with this?)
I don't use all those key markets I mentioned for entry signals into the Russell 2000 Emini TF. However, I will sometimes use a few of those key markets to help with my exits if I'm confused by the price action of TF itself. In addition, depending upon what's going on in a specific trading day I will sometimes use some of the those key markets to help with my position size management of trades in the Russell 2000 Emini TF. Thus, every trade I take is not the same size because every trading day is not the same especially when volatility changes...volatility that often do change.
Further, I'm not married to the Russell 2000 Emini TF. Thus, when I decide to trade another market...I better darn be prepared to do it and that's why I follow other markets so that I understand their price action outside of the Russell on a daily basis.
The point I'm making is that I don't trade with tunnel vision regardless to whatever it is I'm trading today, next week, next month or next year or 10 years from now. It's absolutely critical to my trading style that I understand what's going on in other key markets and global economies because the markets are more inter-connected than ever before. Thus, price movements in the TF or other futures are often (very often) influenced by other factors outside the trading instrument itself.
Hope the above info helps.
Mark
Immensely. I was under the false impression that you only traded TF. My mistake. Just one follow-up question, though. You mentioned possibly adjusting trade size, exit points and so on in TF based on the price action and volatility in other markets. But does not the volatility in TF speak for itself insofar as TF is concerned? Stated differently, how, exactly, would another market give you a more convincing signal about what to do with your TF trade than TF's own price action? For example, if you were long TF and it held firm, would you exit if ES began to falter?