What exactly do you mean by "reading price action"

Price Action = Observing what is happening and trading AS IF it will continue to happen until it doesn't and then doing it all over again.

:cool:

Forget things like key support, pivots, trend lines and all that nonsense.

Each day the market is always different.

The only way to make sense from chaos is to think chaotically.
 
I agree with much of what has already been said on this thread but no one has mentioned price action in regards to getting a sense of market moves through the "action" of market players.

What I mean is identifying large market players’ potential positions through the volume that is trading through each trade. I am not referring to volume bar charts I am talking about lot sizes of trades at different prices and how the market reacts to them.

For example, let’s say the 10 year note is slowly trending up and a seller moves in and starts selling. 1000 lot then 2000 all in a small price range, the market hesitates then 4000 trade. Is it one trader? Who knows but a good opportunity MAY be coming. If the sellers win there might be enough pressure for a short term reversal. If the buyers break through someone might get caught short and it could cause a short run up.

Of course these trades may be a position unwinding or a spread getting traded. That is were experience, intuition and instinct come in.

This is a large part of "price action" to me.
 
Pour moi, the most exciting price action is watching "running stops".

Bam, hit the bottom, up. Bam hit the bottom, up, this is crazy. You buy and anticipate another low but not quite sure it is over but you know what is happening, then bingo, out of nowhere someone got fucked out of their stop on a new low and you know it's over and you are in.

I think the first time you see one, it looks like chaos, wtf the f was that, like a ufo.

But of course, it is a matter of being in the right place at the right time and how often does that happen.
 
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