What does Price Action Mean to you?
- Thread starter kevinmclark
- Start date
in my experience "price action" has a negative flavor to it. in my experience those who say "o, i just watch price action" are not able to explain what it is exactly they're watching. sometimes some generalities will be said like higher highs, higher lows or whatever.
All this talk .. 8 pages of it... yet noone decided to post a chart example of "price action" in action.... OK well, then let me suggest that posting a chart would help a lot.
PTJ told you that his 2002 call on the oil industry had nothing to do with price action? What else did he tell you?
Although I can not be for sure what ES is talking but if it is, he is right.
Price in terms of Time is actually the only way to trade without having to use any indicator or support and resistance. (humble opinon)
I do this for confirmation as I need the crutch of indicators. Nevertheless the theory is that price moves at a certain pace within a certain time frame. ie on a one minuter chart the SP will move by a half point, on a five minute, by 1.2 points. etc. On the daily we call it the Average True Range, but then you have a certain look back period, etc.
They way it can tell you price moveing forward is just that... if the price move 2 points in 1 minute... you may have to think about a trade... if it moves 2 points in one day... well you may want to go take a nap.
To a certain extent it still comes down to personal prefrences and attaching some form of probablility to what sucess that trade could have if it goes in the direction of the price.
bottomline is you can only squeeze X amount of ticks, into a minute, and those ticks will move the price by a certain amount... if the number of ticks is high and the price moves much higher or lower than you may have a setup... that is the price action one must be able to read.
just a humble opinon.
Price in terms of Time is actually the only way to trade without having to use any indicator or support and resistance. (humble opinon)
I do this for confirmation as I need the crutch of indicators. Nevertheless the theory is that price moves at a certain pace within a certain time frame. ie on a one minuter chart the SP will move by a half point, on a five minute, by 1.2 points. etc. On the daily we call it the Average True Range, but then you have a certain look back period, etc.
They way it can tell you price moveing forward is just that... if the price move 2 points in 1 minute... you may have to think about a trade... if it moves 2 points in one day... well you may want to go take a nap.
To a certain extent it still comes down to personal prefrences and attaching some form of probablility to what sucess that trade could have if it goes in the direction of the price.
bottomline is you can only squeeze X amount of ticks, into a minute, and those ticks will move the price by a certain amount... if the number of ticks is high and the price moves much higher or lower than you may have a setup... that is the price action one must be able to read.
just a humble opinon.
As a result of this thread, I am starting to look at price for clues to determine future movements, especially at support and resistance levels. Thanks for all the great feedback.
The problem is when you look at historical price action, it is taken out of context. You can try to "lasso" the historical price patterns into some group of common standards that appear consistent, but discretionary traders will tell you that looking at price action without context is a foolâs errand.
You can look at price with respect to time. You can also look at volume with respect to time or price. They provide some clues to âeventsâ that took place. But itâs helpful to know what these "events" were, against a backdrop of sentiment and âbuzzâ going on at the time.
But price action is the most important because it is the thing that determines your profit and loss.
You can look at price with respect to time. You can also look at volume with respect to time or price. They provide some clues to âeventsâ that took place. But itâs helpful to know what these "events" were, against a backdrop of sentiment and âbuzzâ going on at the time.
But price action is the most important because it is the thing that determines your profit and loss.
