Technical indicators - confused

Quote from StillStanding:

so many people say don't use T/A use Price Action.

what is Price action ? time and sales? level 2?
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Re; Study of Price & volume is classic definition of TA

Well most, including institutions use 50 dma or use some sort of indicators;
however, some would not necessarly/honestly admit that.

Also Still Stand, classic definition of TA is study of price & volume; in that order.

Not level 2, though some may find it useful;
even on any time frame trades/invest.

:cool:
 
Quote from lindq:

Excellent reply!

Indicators are INDICATORS. Not buy/sell signals.

They can often help get you in the ballpark, and are helpful if you happen to be tracking a large watch list. But entries should be based on price action.

As a simple (and rather stupid) analogy, think of indicators as the interstate highway system. They can help get you in the general area of where you need to be. That in itself can be useful, but beyond that they are typically useless.
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Can you give an example of an entry based on price action? e.g. price moved above yesterday's high...

Thanks
 
Here is an example based on price action. Breakout trading based on price moving above/below a level.................it will continue on or it will fall back.....................if it falls back you either scratch it or have taken a couple ticks, if it continues on you win. If you have a fast finger and have as much discipline as a preachers daughter before she "COMES OUT" then you will make money.

KISS WORKS..........forget the esoteric silliness.
 
Thanks.

details needed: how do you find price levels? are these pivot points? how do you know if price is continuing or failing? if you use 1 min charts it might stay above price level for a few bars. if you use a 5 min bar it can come right back...
 
I doubt any single indicator is 'the answer'

There appear to be useful setups that exploit several indicators in combination - and in certain circumstances

Basically all this does is improve your odds

Its still up to you to commit the money and accept the result
 
Quote from StillStanding:

Thanks.

details needed: how do you find price levels? are these pivot points? how do you know if price is continuing or failing? if you use 1 min charts it might stay above price level for a few bars. if you use a 5 min bar it can come right back...
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There are hundreds of different ways to trade via price action only (no indicators) just like there are hundreds of different ways to use indicators.

I highly suggest you choose one particular type of price action method and start there.

Therefore, since you mention one particular way involving Pivot Points...

Use google search engine to try to find as much info as you can about Pivot Point Analysis.

Do the same here at ET via researching that particular topic.

http://www.google.com

http://www.elitetrader.com/vb/search.php?s=

Next, start a new thread about Pivot Point Analysis to get away from this thread because to keep the topic in this thread will only confuse you and get lost amongst the other discussions that may appear later.

Mark
 
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