The Price Action Journal
- Thread starter SusanaDT
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Very nice work Max....hope you're still holding onto that long!
Today's Action:
How does one look at S/R? Everyone has various ideas/beliefs. A chart would be covered with lines if all the possible scenarios were plotted. I'll list a few, others please add to the list & what is important to you!
1. Previous high/low/open/close; daily, weekly, monthly & yearly.
2. Areas of consolidation by price & or volume; intraday, daily, weekly, monthly, yearly.
3. Floor trader pivots; daily, weekly, monthly.
4. Trendlines; intraday, daily, weekly, monthly.
5. Dynamic pivots or the high/low with the 25%,50%, 75% plotted; again intraday, daily, etc.
6. Moving averages; do I use a 20, 50, 200? What type of moving average: simple, exponential, weighted, volume weighted, Hull, Jurik, etc. Again intraday, daily, etc.
7. Fib retracements/extensions & clusters; intraday, daily ,etc.
8. Bands, channels, pitchfork(Bollinger, Donchian, Keltner, Darvas, Andrews, etc).
From what I've observed over time, sometimes they work/sometimes they don't, a flip of the coin.
1. Previous high/low/open/close; daily, weekly, monthly & yearly.
2. Areas of consolidation by price & or volume; intraday, daily, weekly, monthly, yearly.
3. Floor trader pivots; daily, weekly, monthly.
4. Trendlines; intraday, daily, weekly, monthly.
5. Dynamic pivots or the high/low with the 25%,50%, 75% plotted; again intraday, daily, etc.
6. Moving averages; do I use a 20, 50, 200? What type of moving average: simple, exponential, weighted, volume weighted, Hull, Jurik, etc. Again intraday, daily, etc.
7. Fib retracements/extensions & clusters; intraday, daily ,etc.
8. Bands, channels, pitchfork(Bollinger, Donchian, Keltner, Darvas, Andrews, etc).
From what I've observed over time, sometimes they work/sometimes they don't, a flip of the coin.
This is exactly why you should aim for high risk to reward techniques. Its all just a numbers game for all but the most accurate traders. I don't need to be even near 50% to make money, as I average over 3 to 1 gain to loss. I have lots of losers as I cut the risk off quicker than most. The point is, it works.
Money management is everything in trading.
SusanaDT,
Just wanted to applaud you on your efforts to educate. I really like the simplicity of your charts, and wholeheartedly agree with your trading methods.
I only hope you can ignore alot of the nonsense and continue.
Thanks again!
Just wanted to applaud you on your efforts to educate. I really like the simplicity of your charts, and wholeheartedly agree with your trading methods.
I only hope you can ignore alot of the nonsense and continue.
Thanks again!
Jayford:
You understand money management well. I wrote a program to trade Russell 2000 that was right only 43 % of time with 3-1 risk/reward. In a 1000 trades in one year it was up 3000 %. Its just hard to accept losing half the time and still making lots of $$.
You understand money management well. I wrote a program to trade Russell 2000 that was right only 43 % of time with 3-1 risk/reward. In a 1000 trades in one year it was up 3000 %. Its just hard to accept losing half the time and still making lots of $$.
Hi all, I'm new to pure PA and learning to identify the reaction of price to S/R. The turning points and pauses looks reasonable on hindsight. The challenge is how far back to look for S/R in real life trading? Hope to hear your view.
Hi Susana : hope TimeHistogram is allowed, it help me "recall" how fast/slow price move. I'm bad at identifying momentum.
Hi Susana : hope TimeHistogram is allowed, it help me "recall" how fast/slow price move. I'm bad at identifying momentum.
What are those red and blue lines that roll up and down? I'm not going to use the "Ind" word (God forbid), but I recall seeing a thing called moving averages that look similar.
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