Understanding price action

[Nobert]

I agree that mental models are importants.
To understand how things work is the way to go.
Feedbacks between theory and practice are primordial.

But for me trading is probabilistic.
It’s not classical mechanics but more quantum.

It won’t give me an edge to know that ...
A bar is green because there is more buyer.

You won’t see absorption.
You won’t see exhaustion.

Orders are resting everywhere.
I have a 300 depth levels,
So what ?

We’re going everywhere ?

I need to borrow one of those google's quantum pcs to decode that
Saw a pattern among others, where poetry was often, first step into other types of arts/mastery.
Might be a hidden clue for you.

 

[Sekiyo]

I need to borrow one of those google's quantum pcs to decode that
Saw a pattern among others, where poetry was often, first step into other types of arts/mastery.
Might be a hidden clue for you.

You turned me upside down.
Need to ponder about this.

 

[Nobert]

You turned me upside down.
Need to ponder about this.

Ok, im out of here, sorry for spam @Erin

 

[Sekiyo]

It is not a pattern Sekiyo, it is a process. The process of filling orders and how we see them on our charts. I try and do a mix of historical and real...I cannot force the process it unfolds in the same manner over and over.

It’s a grey box.
The pattern is PA which is the output.
The process being to match a transaction.
Inputs processed are limit and market orders.

Must be missing something,
But I’ll read you all along and see.
Because it doesn’t make sense for me.

Thanks.

 

[Erin]

It’s a grey box.
The pattern is PA which is the output.
The process being to match a transaction.
Inputs processed are limit and market orders.

Must be missing something,
But I’ll read you all along and see.
Because it doesn’t make sense for me.

Thanks.

No worries its just a different view of how orders play out in the bars.

 

[Erin]

These levels on the bars form when we get a lower close or higher close then the nearest opposing bar -

 

[Erin]

Just as the individual bars form levels so do groups of bars - swings

 

[Erin]

In this case price is falling - when price crossed under the last level known to be buy orders it created an imbalance of orders. Where we had buy orders we now had sell orders

 

[Erin]

This is a 30 min tf of AudUsd today and how the collapsing price action below the buy orders formed levels above price to short from

 

[Erin]

The same could be applied to longer term charts - how we see the indifference of orders played out in the bars causing levels to be formed