There is no such thing as price action.

[Zodiac4u]

Quote from slapshot:



What I believe to be true price action is what happens on the tape in real time, via the DOM. Particularly as price nears support or resistance levels. And it is not at all about how many contracts that sit at each price level, like most folks seem to think.

Rather, it is a matter of whether the bid or the ask is at that moment chasing after the last price AND the quantities of contracts going off on either the bid or the ask (that has just turned into "last")

In other words, buy vs. sell pressure, combined with velocity. Who is in charge at the moment, buyers or sellers? And with how much "oomph"?

It takes about 1000 hours of screen time on the same instrument to get it, but once you do, then all indicators become arbitrary and are no longer needed.
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Nicely done! Slapshot. It becomes easier to get when you conserve your energy and focus more attention on the dom at key pivot levels! again nicely done!

 

[slapshot]

Quote from ProfLogic:

Slapshot, look at it another way.

Any decision you make you want all of the information available to you so that the decision outcome is as accurate as possible. Anytime you purposely ignore any part of the information or is any part is tainted due to inconsistency or if the skewed in any way, it will adversely effect the outcome of that particular decision.

Professor,

I think I saw this under the definition of 'obvious' in the dictionary.

(just pulling your chain)

 

[slapshot]

Quote from vingbel:

Slapshot,

Agreed that it's hard to verbalize, but can I ask you to try. I have been using a SIM and trading and I kind of see what you're talking about, so any more clues you can add would be greatly appreciated.

OR, you could follow the advice I gave you on an earlier post about practicing it on a sim for an hour a day x 1000 days. And stop looking for a shortcut that doesn't exist . . .

 

[slapshot]

Quote from ProfLogic:

Eliminating all of the variables in your charting is a perfect place to start.

Could you enlighten me on what you mean by this statement?

Any chart that is used is going to have variables - that is why a chart is even needed, to plot said variables.

(I must not be understanding the context of the statement?)

example of the kind of variable I mean:

- price decides to skip over a couple of ticks before the next print - yet the bar will show just the same as if each tick had printed - therefore one could say that those 2 bars have variable composition but that they both may still indicate a breakout or whatever.

 

[Zodiac4u]

Quote from RussellDaytrade:

We interupt this regularly scheduled thread to bring you this bulletin: This just in!

By this point, I think it can be agreed by all, even the OP, that in fact PA does indeed exist, and in fact, in many forms.

Price action, has to exist in any and every instrument that trades. Any movement in any instrument equates to PA. In fact, even no movement in an instrument can be considered PA, the fact it has no movement is in fact a form of PA, (not very good PA, but PA nonetheless).

The only instrument where PA dopes not exist, is the instrument that does not trade. Period.

Now, PA can and does mean various things to various constituencies of traders. For the scalper, such as , it may be the rapid changes reflected on the DOM, in the very shortest of timeframes, in the highest resolution possible.

For a intraday swing trader, PA may represent the changes in P relative to recent price consolidations, supports / resistances.

For an entirely different group, PA may be a function of other factors entirely, such as fundamental factors they consider valid predictors of possible future PA.

For the sake of what I percieve to be the main tenet of the majority of posters to this thread, that PA refers to shorter-term price movement, on a form of intraday movement, whether it is seconds, minutes, or longer, I conclude that PA does in fact exist, in fact, it does so in many forms.

For example, not only does it exist in various timeframes, in any timeframe anyone chooses to represent it in, it also does so in various methods of PA perceptions, or filtering representations. One may prefer to use DOM as their preferred vehicle, another may prefer to interpret and recieve the PA data via charts. Yet another, may at times visualize what and how PA may manifest, through mental visualizations, roadmapping what may occur and lay ahead.

That leaves room for just about everyone, regardless of their chosen methods of recieiving, interpreting, and processing PA data.


We now return you to your regularly scheduled programming.

Also! Nicely done! Russelldaytrade! But lets redefine the term and put this dog to rest so it becomes easier for the rest of ET-land and beyond to clearly understand the term so its no longer vague. Lets just say Real Time price action is (DOM)! And delayed price action is the accumulation of old data which includes the following= set ups (pattern recognition), charts and (point and figure).

 

[vingbel]

Quote from slapshot:

OR, you could follow the advice I gave you on an earlier post about practicing it on a sim for an hour a day x 1000 days. And stop looking for a shortcut that doesn't exist . . .

I am following that advice and am already approaching the magic number. Remember, I have traded, just not full time.

Again, I'm not looking for a shortcut, just trying to learn from those who know more than I.

Plus, I like to ask questions of those who might the see the market the way I'm seeing it --

And your use of DOM is what I'm gravitating towards.

I'm wondering if those of us who react to DOM are more attuned to numbers than charts. When I trade stocks, I look at charts and the price (I've tried to cut out all indicators) and many times, I find that my best trades are based on the actual price. If you've read Wyckoff, you know what I mean.

I'm trying to get a better handle on how that price and how we get to that price relates to buying and selling pressure. No shortcuts. Just as much clarity as I can glean.

 

[vingbel]

Quote from Zodiac4u:

Also! Nicely done! Russelldaytrade! But lets redefine the term and put this dog to rest so it becomes easier for the rest of ET-land and beyond to clearly understand the term so its no longer vague. Lets just say Real Time price action is (DOM)! And delayed price action is the accumulation of old data which includes the following= set ups (pattern recognition), charts and (point and figure).

Zodiac4u,

I might be starting to agree with this. That PA is reading the DOM.

Reading charts would be reading charts or TA.

Now, examining this more closely, on the DOM, the number of contracts or shares traded at certain prices, establishes the extremes of each move. That's how S/R shows itself on the DOM. It's a number -- A price above which or below which the stock/contract will not move... for the time being.

Would you say the number of contracts/shares traded at that price helps confirm the strength of that S/R at that moment as your "reading" the DOM? (I have the total number of contracts (ES) traded at each price as one of my DOM readings.)

 

[Jahajee]

Excuse me,

but

what is DOM?

 

[slapshot]

Quote from Jahajee:

Excuse me,

but

what is DOM?

Depth-Of-Market

 

[ProfLogic]

Quote from jack hershey:

Not to go OT, but at some point all decisions to take action are, in the limiting case, the same for exit and entry. A decision is a response to an end effect of price excursion. Luckily, the trading platform has a particular type of trade that involves both an exit and an entry. This type of trade, the reversal, is the one we all best observe on the DOM and the indicator(s) simultaneously.

I agree. I just instruct people to trade in a single direction until they become comfortable with reversing their position.