Technical indicators

Focusing on price action alone is part of the puzzle. The next thing is to arrive at defining one trading signal to the point that it will jump out at you from a price chart and you will know exactly where you will put your entry, initial stop and far more importantly how to manage the trade as it progresses. I strongly advise you to hand test your signal over a large enough historical sample size to allow you to make hundreds of trades. Keep a spreadsheet of the results. Review the results at the end of the testing cycle and if need be rinse and repeat until you are happy with your results. Next, hand test your signal on different markets (commodities, forex etc) ... imho your results should be successful for all markets.

So after hundreds (or thousands) of hours of this hand testing you have gleamed a price action setup that you are confident and comfortable with and you haven't even risked any money yet! More importantly, through the process you have gained a wealth of trading experience and understanding of price action (if you were paying attention!).

Then to the fun part, doing it for real. Start out small. If things don't go to well, go back to the beginning , work out where you went wrong and hand test all over again ...etc etc.

It's a LOT of work, but if you are want it bad enough you will do it. There are no shortcuts.
 
Quote from TL Trader:

http://www.dacharts.com/123.htm
http://www.dacharts.com/2b.htm
http://www.dacharts.com/inside.htm

These are but but three examples.
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"Pattern", however, is only a type of price action, and if one trades according to patterns without understanding the price action that creates them, he's not much better off than if he were to use indicators.

A more basic form of price action is the behavior of price around what are called "support" and "resistance" (in fact, many of the patterns form as a result of price's reaction to support and resistance).

If you're interested in pursuing this course, PM me.

LC
 
Quote from Lamont_C:

"Pattern", however, is only a type of price action, and if one trades according to patterns without understanding the price action that creates them, he's not much better off than if he were to use indicators...
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Agreed
 
Quote from DrEvil:

Focusing on price action alone is part of the puzzle. The next thing is to arrive at defining one trading signal to the point that it will jump out at you from a price chart and you will know exactly where you will put your entry, initial stop and far more importantly how to manage the trade as it progresses. I strongly advise you to hand test your signal over a large enough historical sample size to allow you to make hundreds of trades. Keep a spreadsheet of the results. Review the results at the end of the testing cycle and if need be rinse and repeat until you are happy with your results. Next, hand test your signal on different markets (commodities, forex etc) ... imho your results should be successful for all markets.

So after hundreds (or thousands) of hours of this hand testing you have gleamed a price action setup that you are confident and comfortable with and you haven't even risked any money yet! More importantly, through the process you have gained a wealth of trading experience and understanding of price action (if you were paying attention!).

Then to the fun part, doing it for real. Start out small. If things don't go to well, go back to the beginning , work out where you went wrong and hand test all over again ...etc etc.

It's a LOT of work, but if you are want it bad enough you will do it. There are no shortcuts.
More...

You nailed it!
Spot on!
YabaDabaDo!
 
Quote from Lamont_C:

"Pattern", however, is only a type of price action, and if one trades according to patterns without understanding the price action that creates them, he's not much better off than if he were to use indicators.

A more basic form of price action is the behavior of price around what are called "support" and "resistance" (in fact, many of the patterns form as a result of price's reaction to support and resistance). LC
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I think I've heard this somewhere before?
:D :D :D
:cool::cool:
:p
 
Quote from ys7799:

mark, thanks u much for your response, can u explain me what do u mean by " price action" and how to take advantage of it

Thanks.
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Buy this book, study it carefully, and you will cut your learning curve substantially. One of the very few books written by people who know how the market moves intraday.

Techniques of Tape Reading
by Chris Schumacher & Vadym Graifer
 
Quote from lindq:

Buy this book, study it carefully, and you will cut your learning curve substantially. One of the very few books written by people who know how the market moves intraday.

Techniques of Tape Reading
by Chris Schumacher & Vadym Graifer
More...

Agreed. Excellent resource. And Vad used to post here (as Threei).

LC
 
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