Where/how can I master price action to trade it profitably?

AvestroTrades said:
I am currently in the process of trying to master price action to trade profitably. Forget all the holy grail indicators, they don't work. Just trend lines, drawings, fibs, etc. Where can I learn more about what I should look for and practice?
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AvestroTrades,

You are on the right path because you realize , no holy grail stuff will make money. So just forget the indicators for now. no time study the 100s of indicators out there.

Get a good charting platform that has good demo account, like ThinkorSwim. They even have the mobile app as well.

I was in your shoes before about 1-2 years ago. I really didn't know where to turn, everyone wanted to sale me something and time was ticking. And man I got tired of trying this and that. I also threw this automation stuff out the window, too much work and messing around, even though I am programmer. Best to stare at chart until have a know profitable way to trade, then automate. Otherwise, over optimization will lead to losing money and losing time.

I decided to stare at the lower time frame charts (15 min down to 1 minute) I chose only time frame chart in that range and stuck with it. I chose one ema indicator and stuck with it. I went to youtube and look at price action stuff.

I just draw lines all over the chart and try to make good profitable decisions per day. Record notes in my journal. I sim trade until I get consistent profitable.
 
Handle123 said:
You are absolutely correct, hit or miss guessing even if you are in trend as NO ONE has crystal ball. But we all need a starting point, we can only control for most part is risk which covers a great deal, how to get to breakeven stop so it becomes a risk free trade with exception of holding over night and gapping.
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Yes, exactly what Handle123 said.
 
AvestroTrades said:
I am currently in the process of trying to master price action to trade profitably. Forget all the holy grail indicators, they don't work. Just trend lines, drawings, fibs, etc. Where can I learn more about what I should look for and practice?
More...
For me the best way to understand price movement is to understand where the big buyers/sellers orders and short term liquidity are and , along with chart trend lines.
 
ironchef said:
Or you can read through this thread to get a sense of what is obvious. I read through every posts and still cannot figure out what is obvious but do get a feel of why price action might work:

https://www.elitetrader.com/et/threads/why-is-the-obvious-not-so-obvious.151802/

Like lindq said, ....... daily and monthly charts for hours everyday to get a feel of how things might develop. Still after hundreds of hours, it is still hit or miss. :banghead:
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%%
Some buy utilities for a dividend,OK, more power to them Then you see one with no dividend+ management known for screws ups, worse than {C}Citigroup. PCG is down again., no surprise The strange+ tough thing about the market, easy to see how DOW/DIA gets overpriced,some days, but its still a big mystery how PCG ever got above $5??:D:D

I do have about 5 charts on 5 minute candles, but 52 weeks/end of day............ makes so much more money.
PUT that another WAY, market makers have better things to do than watch 5 minute charts; know of one fund that does short term trading well =Crabel Capital Management. Most all the rest do end of day, which means daily candles, weekly candles, monthly candles. I know many hedge funds do shorter time : that is why so many of them dont beat SPY/S&P 500
 
Focus on what you want to master. Minimize the distractions. And then put the work into it.
You want to focus on price ? Why then not just do exactly this ? Open a DOM of a nice market that you think is interesting to you (I like the NQ alot, but others prefer stuff like the Bund or ZN), and watch just that one DOM. Not for a minute, not for 10 minutes but for at least the morning session. Forget about charts, indicators and Idontknowwhat. For the beginning you just need one screen, with one DOM on it. Watch what is happening right in front of you. Not 5 minutes ago, not 1 hour ago. Watch the action unfolding RIGHT NOW.

If you bring up the discipline to do this, I guarantee you that you will make drastic improvements in reading the market within 6-12 months.
It is so simple, but at the same time so very hard. Thats why so few people ever improve in anything. It is not sexy, it is not fancy, it is very tough on your mind and it takes lots of discipline. The same reason people have a hard time sticking to a diet, sticking to their training, improving in general, in life.
Those who dont look for the magic pills and holy grails but just bust their asses (in an intelligent manner) with lots of hard work and effort are usually those who achieve what others can only dream about.

Good luck !
 
AvestroTrades said:
I am currently in the process of trying to master price action to trade profitably. Forget all the holy grail indicators, they don't work. Just trend lines, drawings, fibs, etc. Where can I learn more about what I should look for and practice?
More...

It would be helpful to know what specific market or space you are interested in. Price action in ES is quite different than CL is quite different than ZN. There's a possibility that you could buy a bid and sell an offer in ZN - but next to no chance of it in CL.
 
My experience has been to just trade and gain experience. And eventually create a conceptual understanding of how price patterns move, and find the right entries to give you an edge. You'll never create a model that is always right, but you can definitely get an edge.
 
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