Understanding price action

[Erin]

as mentioned, you need to
target minimum reward : risk ratio of 3:1 or better.

if you target RR ratio of 1:1, your success rate must be very high like > 75%.
some people call that guerrilla tactic where you attempt to earn 10 pips for 10 pips risk.
and some book traders ( they look at ladder, not chart) do that.

In theory, your concept will work.
Unfortunately the example you gave AUDUSD has very small range.
So in real life, your concept wouldn't work.
Go try using real money to trade and see if you can earn money.

I trade live and as I said before if you are not interested in the topic of just understanding how price moves with orders this is not a thread you will enjoy. Every touch by price on the swap area was an opportunity to short and every retrace from the swap that reversed and headed back to it was an opportunity to long...to the target - the swap level

 

[volpri]

Ok - if your mind is totally closed to how price moves with buy and sell orders you should probably not be here - being the loudest in the room does not make your views better or less. These threads are only viable when the conversation is constructive. Let me go back and see if I can explain this alittle better. Here is a chart of how price action broke down and why it broke down and return of price back to the sell orders. Next Ill see if I can get some light housekeeping on the thread

Got to work in the house some but will look over your charts again tonight. Thanks for your efforts to explain the concepts.

 

[Erin]

as mentioned, you need to
target minimum reward : risk ratio of 3:1 or better.

if you target RR ratio of 1:1, your success rate must be very high like > 75%.
some people call that guerrilla tactic where you attempt to earn 10 pips for 10 pips risk.
and some book traders ( they look at ladder, not chart) do that.

In theory, your concept will work.
Unfortunately the example you gave AUDUSD has very small range.
So in real life, your concept wouldn't work.
Go try using real money to trade and see if you can earn money.

Here is the euro chart from last night. The entry was at 1.0739. I understand you are very focused on RR but if you do not have a good entry you have nothing but a trade drawing down your account - I concentrate on entry and base hits and I totally understand your focus varies from mine and that is fine.

 

[Erin]

If everyone has cooled their jets maybe we can actually move onto why price targets certain areas - it will be looking at a group of bars and why they held price up or why price fell through them - Ill throw some RR on my charts to make everyone happy. I do not like the present price action on pound but it adheres to what was said about swaps and we do have a nice target above. This is our starting chart and Ill deconstruct it through the weekend

 

[wrbtrader]

If everyone has cooled their jets maybe we can actually move onto why price targets certain areas - it will be looking at a group of bars and why they held price up or why price fell through them - Ill throw some RR on my charts to make everyone happy. I do not like the present price action on pound but it adheres to what was said about swaps and we do have a nice target above. This is our starting chart and Ill deconstruct it through the weekend

You seem to be moving on just find without everyone. Yet, I do recommend that if you're talking to someone specifically to just quote them instead of saying everyone as if everyone has the same point of view / opinion.

Chart below is just a different point of view via hindsight chart analysis of the same price action although I don't view them as "Orders". Yet, if I was a scalper or using the DOM / Order Flow analysis...orders would be a suitable term.

My timeframe on AudUsd is 120min whereas yours is 240min I think.

P.S. I don't trade AudUsd nor do I understand its market context that controls its price action movement. Just wanted to post a different pretty chart.

wrbtrader

 

[volpri]

You seem to be moving on just find without everyone. Yet, I do recommend that if you're talking to someone specifically to just quote them instead of saying everyone as if everyone has the same point of view / opinion.

Chart below is just a different point of view via hindsight chart analysis of the same price action although I don't view them as "Orders". Yet, if I was a scalper or using the DOM / Order Flow analysis...orders would be a suitable term.

My timeframe on AudUsd is 120min whereas yours is 240min I think.

wrbtrader

View attachment 226025

That is just trading zones in a Range. I don’t think that is what she is talking about.

 

[wrbtrader]

That is just trading zones in a Range. I don’t think that is what she is talking about.

It's not what she's talking about...that's part of my point.

I'm stating its the same price action via a different point of view just like I'm stating that she uses the phrase Sell Orders / Buy Orders and others uses the phrases like Support, Resistance, Delta High/Low, Supply/Demand or whatever...

Its the same wheel.

Yet, as stated, if she's using DOM / Order Flow analysis with her chart analysis...I would then understand her use of the word "Orders" as if she's looking at additional info beyond just the chart itself. Info she has yet to discuss until she explains the basics.

Also, considering this is not a trade journal...its ok to post a different chart perspective of the same price action.

Once again...same wheel...not reinvention.

P.S. I could post a different chart via the same price action by what others call as Pivot Point Analysis.

wrbtrader

 

[NQurious]

View attachment 225917
Bed time story

One of these days, Mickey, @speedo and I will have you join us for a day of trading.

Oh the stories you will hear that day ...

 

[NQurious]

although I don't view them as "Orders". Yet, if I was a scalper or using the DOM / Order Flow analysis...orders would be a suitable term.

Its the same wheel.

With all dues respect I do not htink you have the necessary perspective to judge what she is doing here. I do not mean at all to imply that you do not have a profitbale trading plan and the discipline to trade it. I specifically am referring to a difference between how traders such as @Erin, @volpri, and myself understand market context and the motive force that casuses price action and how you may understand that context.

Let me ask you, Mark: In your trading, does any of your analysis or decision making involve the thinking in terms of what bulls and bears or buyers and sellers are doing from moment to moment in the market? When you get a trade signal, is that signal at all based upon an interpretation of bulls/bears, buyers/sellers? Or is it primarily based on some other observation, e.g. S/R, range expansion/contraction?

Do you, for example, view a lot of price action as noise, or do you attribute import to each and every tick, especially when identifying entries, exts, targets, etc?

 

[maxinger]

we trade differently.
so leave it as it is.