The Price Action Journal

[bighog]

alea


But you could not resist. great shows your lack of discipline. In 3 months your trading will be done. hahahahaha

 

[alea_jacta_est]

 

[MandelbrotSet]

Quote from alea_jacta_est:

Observations from the Village Idiot:

1-VOLUME is out as "indicator" yet it is present in each bar as a 10,000 constant. Therefore volume is present as a subjective INDICATOR in the speed at which each bar prints. Some bars take a lot of TIME to print and some others print in nanoseconds possibly.

2-TIME is another "indicator" that is sorely missing or subjectively present in a live version of your (PRICE ONLY? )charts and not present at all in the hindsight version. Fast rejection (Tempo?) at extremes is a "pure price action" indicator that is very useful in my opinion.

3-When a sufficiently big order comes in, conceivably many bars could print simultaneously, this poses another execution glitch, where what "looks" like an entry or exit in hindsight, is not actionable in real time due to speed, yet those are generally fast vertical moves.

4-An idea would be to use a Price-Volume chart like yours, and a Price-Time chart. Another is to use a Constant Price Range chart, and a Price-Time chart. Maybe too complicated.

Excellent ideas expressed in this post.

I have also added in the hei-kin ashi component in the above listed chart variations, as well as viewed them using the 3-Line Break indicator (a chart was posted earlier).

There is good and bad in all of the options listed, and there is no perfect way to display the charting information.

 

[MandelbrotSet]

Quote from saliva:

You know why P.M.T. is so important, or rather revelatory when I first stumbled upon it?

Price + Momentum + Time = TREND

Another great post ... but what you are leaving out is the element of Volatility, and how to use it in your trading.

By playing around with these concepts you can come up with many different ways to skin many different cats.

 

[amitman]

Quote from alea_jacta_est:

Observations from the Village Idiot:

1-VOLUME is out as "indicator" yet it is present in each bar as a 10,000 constant. Therefore volume is present as a subjective INDICATOR in the speed at which each bar prints. Some bars take a lot of TIME to print and some others print in nanoseconds possibly.

2-TIME is another "indicator" that is sorely missing or subjectively present in a live version of your (PRICE ONLY? )charts and not present at all in the hindsight version. Fast rejection (Tempo?) at extremes is a "pure price action" indicator that is very useful in my opinion.

3-When a sufficiently big order comes in, conceivably many bars could print simultaneously, this poses another execution glitch, where what "looks" like an entry or exit in hindsight, is not actionable in real time due to speed, yet those are generally fast vertical moves.

4-An idea would be to use a Price-Volume chart like yours, and a Price-Time chart. Another is to use a Constant Price Range chart, and a Price-Time chart. Maybe too complicated.

I use indicators in my charts, so I will not post them due to rules of the thread.

I myself use a combination a Range bar charts for pure price action and time-charts for momentum and find this combination good enough for me. Although I must admit that constant volume charts alone are still very good.

 

[ammo]

Quote from MandelbrotSet:

Another great post ... but what you are leaving out is the element of Volatility, and how to use it in your trading.

By playing around with these concepts you can come up with many different ways to skin many different cats.

salivas earlier post was the best description of trading on feel,or what you see without using bars and lines,good attempt to describe something that is hard to put into words

 

[Musashi]

Quote from saliva:

One greatest misconception I see among traders is that they think there is only one support or resistance throughout the day. In reality, there are many minor support and resistance that corroborate with one another to establish a major support or resistance.

Hence, there is no such thing as a "major" support or resistance in my dictionary. However, as I stated in my previous post, you can guage the momentum on its way up or down to the support/resistance to get a feel for how these price levels will hold up. Let's take an example. Suppose we just hit the support at 1250 and reversed course. Now it's trading at 1252. The next obvious resistance lies at 1261, which aligns with previous support in the past. However, there is a cluster of minor resistance looming over 1253, 1255, and 1258. All of these resistance will act as a barrier, much like those nasty bumps on the road to curb speed. Likewise, the momentum will be hampered with every encounter at these levels. By the time you reach your destination at 1261, you're flat out exhausted. As such, you rarely ever get a clearance on your first visit.

Having said that, the text book definition of a major support is spelled out as any price level that withstood the onslaught in the past. I have no qualm against that assertion, but if you bang enough times anything is likely to come toppling down. So my theory is that even a major support or resistance will get taken out, for the most part, on the second attempt. The key is just how quickly that will happen. The longer it takes, the lower its probability of success. Therefore, the wide spread notion that the third attempt usually ends up as a disaster tends to be equally true.

Again, it's all about P.M.T (Price, Momentum, and Time). So, pay up!

Thank you Saliva, I knew you were the right person to ask

For those looking for a starting point on S/R look at this thread by DbPhoenix

http://www.traderslaboratory.com/forums/f131/support-and-resistance-3878.html

 

[smilingsynic]

Quote from Anekdoten:

I completely misinterpreted your post, I take my "mock" back. My bad SS.....



Anek

No offense taken. And I should have been more careful in my earlier post not to sound pompous.

You are welcome to my autograph, but I have to warn you that I am afraid you wouldn't get much for it. That said, you wouldn't be the first. I have written a book, and somebody actually came to the house when I was working out on the front lawn to ask for my autograph.

It was a weird experience that I would rather not go through again (someone actually went through the trouble of looking up my address in the phone book and coming to my house).

Anyway, good luck to you.

 

[saliva]

Quote from MandelbrotSet:

Quote from saliva:

You know why P.M.T. is so important, or rather revelatory when I first stumbled upon it?

Price + Momentum + Time = TREND

<font color="blue">Another great post ... but what you are leaving out is the element of Volatility, and how to use it in your trading.</font>

Actually, the volatility is already baked into the pie. I don't mean to sound condescending in any way, but may I suggest that you spend more time thinking about those three components in question and their interaction to one another? I would much rather have you see for yourself.

On a minor note, there are some very important technical patterns that work like a charm in detecting reversals as some of you traders already know: double-top and double-bottom patterns, as well as the "pipe".

 

[ammo]

Quote from saliva:

<font color="blue">Another great post ... but what you are leaving out is the element of Volatility, and how to use it in your trading.</font>

Actually, the volatility is already baked into the pie. I don't mean to sound condescending in any way, but may I suggest that you spend more time thinking about those three components in question and their interaction to one another? I would much rather have you see for yourself.

On a minor note, there are some very important technical patterns that work like a charm in detecting reversals as some of you traders already know: double-top and double-bottom patterns, as well as the "pipe". [/QUOTE] the pipe?