Jack Hershey and Spydertrader, searching for the Holy Grail
1
And suddenly, it hits!!!
And suddenly, it hits!!!
There is no such thing as price action.
- Thread starter LodeRunner
- Start date
I do not know what the history of LodeRunner is but I concur exactly with his proposition that "there is no such thing as price action".
Price action if it meant anything would be price and nothing else. There would be PRICE ONLY. That would be price, one price, ONE NUMBER, on the screen in front of you. It would be changing as price changed. There would be NOTHING ELSE to help. Just ONE NUMBER.
But price action so-called is price on a chart . It is reshaped price according to the live chart it is on - time bars (1m, 5m, 10m etc), volume bars or range bars. You then read it as history - the current price with whatever goes before it on the chart you are using. So you are reading price in the patterns in which current price arises. And so you are using not only price reshaped but also price history.
So-called 'price action' players are therefore no different from a players using indicators. Indicators merely give an algebraic or arithmetical presentation of price history running into current price.
One suspects that some using so-called price action do so because their brains can only cope with the fewest dimensions. They are then relying on 'instinct' to trade price in its reshaped and historical context on the screen.
Price action if it meant anything would be price and nothing else. There would be PRICE ONLY. That would be price, one price, ONE NUMBER, on the screen in front of you. It would be changing as price changed. There would be NOTHING ELSE to help. Just ONE NUMBER.
But price action so-called is price on a chart . It is reshaped price according to the live chart it is on - time bars (1m, 5m, 10m etc), volume bars or range bars. You then read it as history - the current price with whatever goes before it on the chart you are using. So you are reading price in the patterns in which current price arises. And so you are using not only price reshaped but also price history.
So-called 'price action' players are therefore no different from a players using indicators. Indicators merely give an algebraic or arithmetical presentation of price history running into current price.
One suspects that some using so-called price action do so because their brains can only cope with the fewest dimensions. They are then relying on 'instinct' to trade price in its reshaped and historical context on the screen.
In case one wants to learn more about Steenbarger, here is a blog that I find very informative. He is also a big proponent of market delta
http://traderfeed.blogspot.com/search?updated-max=2006-11-06T22:50:00-06:00&max-results=50
http://traderfeed.blogspot.com/search?updated-max=2006-11-06T22:50:00-06:00&max-results=50
Quote from jack hershey:
I view PA as a commonly espoused "modus" or "technique".
Thus PA is a "system" by which the espousee's make money.
The OODA , adopted by Steenbarger from it originator, John Boyd, a famous fighter pilot instructor, introduces most of the nuances and baggage of PA "traders".
"differentiation" occurs as a consequence and the OP refers to this "differentiation" with many terms to tell his story.
PositScience's Brain Fitness Program in a well conceived way deals with inducing Thinking Faster, Focusing Better and Remembering More... This seems to be the definition of improving PA skills and the intrinsic knowledge upon which it is based.
As OODA shows, there is an inductive aspect (a sort of curve fitting common mistake) in the D and A portions. All PA traders recognized fully this is where "they do their thing". I won't characterize it with "my words" but it is uniformly characterized by several (3 major ones) ancillary things that go with and are made part of PA trading to deal with the inherent problem of being inductive in one's work and orientation.
The consequences of the mind building that occurs and the way it affects perception is stark and revealing. The OP is making the case as we see.
The elephant in the room is a dilemma. Induction in PA trading creates a perception that the human emotionally and continually finds deep needs to deal with. (The anxiety, fear and anger of PA trading). Steenbarger makes a living remediating this with his client population.
As for the ATS's of PA trading, they unremarkably, are spoken of as things that come and go as the market continually changes (they say, by no longer fitting the original curves).
Three things are apparent:
1. Using an inductively based feedback system for trading is a no no.
2. Perception is 90% inference from the mind's feedback that is merged with sensory (and emotion creating) 10% PA observations. (Inference is described by the OP using the word "instinct")
3. Differentiating the mind through repeated PA inductively derived drills (the act of trading daily) is a no win proposition, mentally and emotionally speaking.
What does Steenbarger do to affect repairs? LTD.
Edit: OMFG, thank you.
Without price action, I don't know what you people are using to trade, but I'll tell you what.
You can keep it.