Me? Guess you never checked out my thread?
http://www.elitetrader.com/vb/showthread.php?s=&threadid=29468&perpage=6&pagenumber=84
Price Action Traders
- Thread starter bearmountain
- Start date
Me? Guess you never checked out my thread?
http://www.elitetrader.com/vb/showthread.php?s=&threadid=29468&perpage=6&pagenumber=84
Using Fib lines isn't actually price action trading. Pure price action is really nothing more than where price is going right now and what price would have to do to signal continuation of the current move vs a change of sentiment (direction).
So if price is moving up, that means buyers are outnumbering sellers. If you want to join the move up as a pure price action trader you have 3 choices: you either enter long immediately and place a stop loss at a price that would signal a change of sentiment, or you wait for a pullback followed by a price-confirmed signal that the up move is continuing off the pullback and will likely test previous resistance, or look to buy if price breaks through the previous resistance level.
No lines or indicators are needed to trade this way.
Nothing guarantees that price will continue as you expect it to, but the odds are in your favor if you follow price, because price tells you who is in control right now, and it takes a shift in sentiment to change that.
I credit my long-time mentor Bighog for patiently spending many months trying to get me to grasp this concept
And thanks to Geez as well for posting trades in real-time day after day and proving it.
Did you check that link? There are no fibs there.
edit: And according to recent searches, you use indicators in your trading.
http://www.elitetrader.com/vb/showthread.php?s=&postid=2542256&highlight=bollinger#post2542256
"Stochastics are an ATM machine when price is moving within a range.
I've no idea what MACD is good for. "
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And here is a chart of yours from your journal http://www.elitetrader.com/vb/attachment.php?s=&postid=2250474
Did you just start trading PA rather recentl?y, because using any indicator is not pa only trading, and using lines in your trading doesn't make someone "Not a price action only trader".
Price action trading --> http://www.elitetrader.com/vb/attachment.php?s=&postid=2927255
edit: And according to recent searches, you use indicators in your trading.
http://www.elitetrader.com/vb/showthread.php?s=&postid=2542256&highlight=bollinger#post2542256
"Stochastics are an ATM machine when price is moving within a range.
I've no idea what MACD is good for. "
------------
And here is a chart of yours from your journal http://www.elitetrader.com/vb/attachment.php?s=&postid=2250474
Did you just start trading PA rather recentl?y, because using any indicator is not pa only trading, and using lines in your trading doesn't make someone "Not a price action only trader".
Price action trading --> http://www.elitetrader.com/vb/attachment.php?s=&postid=2927255
Quote from NoDoji:
Bearmountain sent me a PM and they let me out of detention
I'm still an early student of PA and honing my method, distilling it down to pure PA with a 20-bar EMA to clarify trend and channel.
Read Al Brooks' book, "Reading Price Charts Bar By Bar".
PA in a nutshell:
Flat 20 EMA = range/channel/consolidation
Rising 20 EMA = uptrend
Falling 20 EMA = downtrend
With-trend trades are easiest and most profitable (trading with a rising or falling 20 EMA).
Buy or sell breakouts or pullbacks:
Price in an uptrend pulls back (down bars), look to buy a break through a previous bar's high.
Price in a downtrend pulls back (up bars), look to sell a break through a previous bar's low.
Price in an uptrend comes from a pullback to test the previous resistance, buy at or a tick above the high.
Price in a down trend comes from a pullback to test the previous support, sell at or a tick below the low.
If trading a breakout, use a tight stop because a failed breakout (breaks a few ticks then reverses) is a sign the trend may be reversing.
Counter-trend trading:
All trends eventually end and here are some signs of reversal -
Price has 3-4 pushes in a trend OR price has a strong push in one direction, consolidates in a narrow range, then has a breakout and another push in the same direction (measured move), look for reversal signals:
A hammer (bottom of a downtrend) or shooting star (top of an uptrend) with a long wick. Usually trend will reverse soon. Short as soon as that bar closes. This is pure counter-trend. Waiting for the first lower high/higher low is confirmed counter-trend.
The second lower high/higher low usually confirms the new trend is underway (the 20 EMA should now be rising/falling instead of flat and price should have closed on the opposite side of the 20 EMA) and produces the first strong move of the new trend.
For a college-level education in PA, read Al Brooks.
When I clicked on the link there was a discussion of Fib levels.
I started trading PA rather recently, yes. When I kept my journal I never really understood what was meant by PA. I didn't understand a lot of things, like trend behavior and breakouts. It wasn't until this year that I really began to understand these things.
I do keep a 20-bar EMA on my charts for choosing counter-trend profit targets, and to quickly gauge value entry points in a very strong trending move.
I believe I looked at it initially when you originally posted. researched it some, someone mentioned it took him 2-3 years to master pitchforks, so I moved on!
What is your methodology, do you just trade that one pattern?
Regarding using fibs etc, even price action guru al brooks uses measured moves. As he says, our goal is to transfer money from other people accounts to ours.
Who are you talking about? And what do you mean by if i trade just that one pattern? The lines are always different for each stock.
I haven't read Al Brooks material but if he's using Moving Averages...
Why is he being discussed in this thread considering that's not "Price Action" trading as in without indicators.
However, I do understand some traders like to use indicators in combination with their primary price action method. This allows for them to loosely call themselves "price action traders".
Regardless, I see a great difference between "Price Action Only" trading versus "Price Action" trading.
At least this thread "Price Action Traders" is in the section called "Technical Analysis" here at ET because there's many TA bashers that doesn't consider price action trading as a form of TA.
Ok...I think I get it.
Mark
Why is he being discussed in this thread considering that's not "Price Action" trading as in without indicators.
However, I do understand some traders like to use indicators in combination with their primary price action method. This allows for them to loosely call themselves "price action traders".
Regardless, I see a great difference between "Price Action Only" trading versus "Price Action" trading.
At least this thread "Price Action Traders" is in the section called "Technical Analysis" here at ET because there's many TA bashers that doesn't consider price action trading as a form of TA.
Ok...I think I get it.
Mark