Price Action

[yogibear]

Hi, id like to know more.

Hi, do you mean about price action?
Price action is just trying to gauge potential movement in the mkt, using the rawest indicator there is, Price itself.
I would suggest reading through the threads on the forum. There are a few, and they all view price action from a similar, but slightly different perspective.
Price action doesn't use a lot of indicators. On this thread, i use trendlines, ma's, fibs occasionally, but its really based on price action at major support and resistance levels, generally trading with the trend.
Hope this helps.
If you've got ant questions just ask, someone usually knows the answer.

[sniper012]

Glad to see you back on. I've been really busy but I do still post. I hope all is well with you. I'm looking forward to your posts Take care!![quote=yogibear;87830]

You mean price action? I would think that not too many people are pure price action traders.

Hey Sniper, long time no speak, trust you're well.
Good points you made about the training providers. Personally i think most of them are bandits. The sad thing is, most people get suckered in thinking they're gonna get rich quick, just watching a few indicators and waiting for the signals. you and i know, it just doesn't happen. Its taken me years, and countless hours studying charts and books, to start to get a feel for the market.
I'm gonna start to try and post on the thread again, just haven't had the time for a while, but i think i can get back to it within the next couple of weeks.

Cheers

[sniper012]

I said I would post so...I had this pair bullish based on the weekly chart. This chart i have attached is a 1 hour chart which I don't trade unless I know I have the long term trend in my favor. You can see the inside bar that I circled. That was my entry. Wish I would have caught the IB right before the one I did catch but...anyway, I bought 10 mini lots on this. My stop loss was 37.5 pips so I closed 5 of the 10 lots at 37.5 pips. That's is why you see 37.5 on the chart because that indicates the profit I have taken already. Further to the left, you can see that the trade is still open and is up 45 pips. I'm going to close 3 of the remaining 5 lots when I reach a profit of 75 pips, which is double my risk. After that, I will still have 2 lots left. What I will likely do is close 1 of the 2 when I reach 112 pips, which will be 3x what I risked and then I will just hold the last lot until my heart is content. Who knows where it will stop? It doesn't matter because I can't lose. I have already put myself in a position where the worse that can happen is that I will break even. If my stop loss is hit, I will just give back what the market gave me. On the positive side, this may be the start of a huge trend that lasts for 3 months that will put me into 1,000's of pips.

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[sniper012]

The second target has been hit. Now waiting for the next to be hit.

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[trade4life]

As with most things in Forex. this depends on understanding how an indicator works and how each trader's ability to apply this knowledge to interpret indicator movement to price action.

What does this mean to me? Again, it goes to the heart of the matter, what came first? The price action or the indicator that caused the price action.

Well, I think the price action obviously came first since price data is the first thing printed on a price chart and without it there would be no data for the indicators to be derived from. Indicators are just derivatives of price, therefore I just choose to read the price instead of some secondary representation of it.

[trade4life]

You mean price action? I would think that not too many people are pure price action traders. I took me a while to get rid of my old bad trading habits even after I discovered price action. There are a few traders on the forum who love this method but I also find a lot of members who kinda fight the idea of not using indicators. Basically, we all learned to trade using indicators. I took a class years ago with a company called Better Trades. I won't say that it was a total waste of time and money (well over $1000 for a 2 day course) because it did give me the basics, but I could have learned the basics on my own. They never talked about take profit or stop loss levels. Never anything about price action. It was all about the indicators and divergences and so on. I really thought there was something wrong with me because I was doing everything that they told us to do and I was losing trade after trade. Then of course the offered dvd's that you could buy for $1,200 and you could re-take the class for $100. In fact, they recently called and emailed me to invite me to take the course over. Hey, in order for there to be winners, there have to be losers so I would say to better trades, "keep up the bad work." Sorry to drone on but Mike, you remember we had a conversation about starting some kind of forex class or training center. I already know I could do a much better job at teaching than anyone at better trades. I think their goal is to give you just a little bit of knowledge and then keep you coming back to buy cd's, dvd's and online classes. Believe me, those cats are making millions. When I took the course, there were at least 100 people there and the class cost at least $1,000..it might have even been $2,000. Then they get you with their trading platform that costs another $2,000 a year because it's a direct access broker. Point being, just for the class alone, they made at minimum, $100k. It was actually more like $400k because I know I went for some of the bells and whistles and i wasn't the only one. That doesn't even include the follow up online classes. They have one class that costs an arm and a leg and they claim to teach you how to trade the QQQ's. Well, don't you think that this should have been included in what I paid already?

That definitely sounds like a big scam. There seem to be a lot of scammers in Forex, but there are some good educators out there too. They typically aren't charging thousands of dollars though and are offering something of real value, at least from what I've seen of the genuine ones.

[yogibear]

[QUOTE=sniper012;89039]I said I would post so...

Hey Sniper, good to see you posting some charts, and a nice trade with some good pips.
I'm still not really trading, although i do have a short that triggered on Eur/usd last night.
I'm short @ 1.3713, 10 pips below the evening star, or i guess you could call it a bullish piercing if you ignore the sunday bar. I played it half stake, and have closed half for 50, with stop now at entry, so the trade can't lose.Look like its retracing a bit, we shall see.
The interesting thing, if you look at the daily chart, was the same pattern posted on a lot of charts, but they were all basically trading into potential support. As it is, my trade stopped dead at the 20ma.
the pattern was on all the yen pairs, aus and nz, e/£ and even the dow. Most didnt have R;R going for them, so i passed.
Heres my eur/usd chart.

[sniper012]

I had noticed the same pattern on several charts. Right now I'm short nzd/jpy based on the 8hr chart. I'm up but it's not moving exactly the way I would like. Looks like it might be forming a bullish pin so I'll see what happens when the bar closes at 9.[quote=yogibear;89337]

I said I would post so...

Hey Sniper, good to see you posting some charts, and a nice trade with some good pips.
I'm still not really trading, although i do have a short that triggered on Eur/usd last night.
I'm short @ 1.3713, 10 pips below the evening star, or i guess you could call it a bullish piercing if you ignore the sunday bar. I played it half stake, and have closed half for 50, with stop now at entry, so the trade can't lose.Look like its retracing a bit, we shall see.
The interesting thing, if you look at the daily chart, was the same pattern posted on a lot of charts, but they were all basically trading into potential support. As it is, my trade stopped dead at the 20ma.
the pattern was on all the yen pairs, aus and nz, e/£ and even the dow. Most didnt have R;R going for them, so i passed.
Heres my eur/usd chart.

[yogibear]

[QUOTE=sniper012;89339]I had noticed the same pattern on several charts. Right now I'm short nzd/jpy based on the 8hr chart. ]

Yes, all the charts haven't moved as we would have liked.
On my charts, nz/yen had potential support below, which its tested, and is now sitting bang on the 20ma.Not much room to move.
From my charts, eur/yen had the better r;r and a decent space to move to support/ma.
But if one moves they all tend to move, so i guess its just wait and see.

[yogibear]

The second half of the eur/usd was stopped out at b/e.
Crude- closed half +70 , stop to b/e.

[sniper012]

I was expecting a reversal on this earlier, that's how I lost the 10 pips. The down trend resumed and I more than made up for my loss.

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[sniper012]

might be another inside bar forming on this pair. Stop loss is pretty tight. I'm getting in if it holds up.

[Airheadz]

This is the exact method I use!

[Airheadz]

I thiink we'd have to look back into the creation of the universe to see if price action came before an indicator.

But I'd lean toward the indicator creating a price action set up, whether it be technical or fundamental, something made that price action form.

[sniper012]

I must say that I could not disagree more. First, why does it even matter which came first? The vcr came before the dvd and blu ray but that obviously doesn't make it better.However, I think it's pretty clear that price action had to come first. You think the big time traders and institutions are looking at macd and rsi to make their trading decisions? Of course not. They are looking at price. All indicators are formulated based on what price has already done, this is why most indicators are lagging indicators.If you look on my chart, you will see that price action gave reversal signals 3 days before there was a signal given by macd in the form of a crossover. Some people like to wait until macd crosses the zero line so in the first trade, you would have waited almost 2 weeks to get in on the trade. With the more recent trade on the chart, you would still be waiting.

I thiink we'd have to look back into the creation of the universe to see if price action came before an indicator.

But I'd lean toward the indicator creating a price action set up, whether it be technical or fundamental, something made that price action form.

[yogibear]

This is the exact method I use!

Feel free to post your charts and trades.
Daily chart has had nothing decent recently, but today theres a lot of PA.
Most of the xxx/usd pairs have printed the same signal.However i wont be trading them, as they're all basically at support. Of course i may well be wrong, and they might be good trades, but i'm unsure, so i'll pass.
Eur/gbp has made a nice signal, finally breaking support.

[yogibear]

Eur/Gbp

I've shorted this today. I didnt short after the bearish engulfing.
Basically i pulled a fib on yesterdays bar, and put an order at the 50%.
Sometimes i've seen after a definitive break of major support or resistance, you initially get a retrace.
More risky type of trade, so only half stakes. The benefit is a smaller stoploss.If i'm wrong, it wont be a full loss.

[yogibear]

Eur/Gbp trade
Quick update- the trade is still in negative pips.
It flirted with my stoploss ( dotted red line) but i'm gonna run it.
Its about minus 15 pips at the close, but came a lot closer.
Nothing has really changed my perspective, if i get stopped out , so be it.
Mkt opens shortly, some decent pa on the charts, i'm just suspicious as to the news coming out of Europe. This is the fundamental problem of TA. When every fibre of your body is screaming to get out and close the trade,for a minimal loss, do you still trust the chart??

[sniper012]

It's a tough call. I know how you feel. That's why it's best not to look at the chart after you have executed the trade. I know there have been times in the past when I kept a really close eye on a trade and when it started to go in the opposite direction, I would get scared and close it out before my stop loss was actually. I would look back at the chart later only to see that my SL was never hit and the trade eventually went where I anticipated. Of course I just wanted to kick myself but it taught me a valuable trading lesson.

Eur/Gbp trade
Quick update- the trade is still in negative pips.
It flirted with my stoploss ( dotted red line) but i'm gonna run it.
Its about minus 15 pips at the close, but came a lot closer.
Nothing has really changed my perspective, if i get stopped out , so be it.
Mkt opens shortly, some decent pa on the charts, i'm just suspicious as to the news coming out of Europe. This is the fundamental problem of TA. When every fibre of your body is screaming to get out and close the trade,for a minimal loss, do you still trust the chart??

[trade4life]

I must say that I could not disagree more. First, why does it even matter which came first? The vcr came before the dvd and blu ray but that obviously doesn't make it better.However, I think it's pretty clear that price action had to come first. You think the big time traders and institutions are looking at macd and rsi to make their trading decisions? Of course not. They are looking at price. All indicators are formulated based on what price has already done, this is why most indicators are lagging indicators.If you look on my chart, you will see that price action gave reversal signals 3 days before there was a signal given by macd in the form of a crossover. Some people like to wait until macd crosses the zero line so in the first trade, you would have waited almost 2 weeks to get in on the trade. With the more recent trade on the chart, you would still be waiting.

I couldn't agree more sniper, you're spot-on as usual. Indicators are all derived from price action; no price movement, no indicators, it's very simple really. Why not just learn to read the actual price movement itself instead of trying to read and trade off of some vague interpretation of price movement? Honestly, if you really think about trading with indicators it just does not make sense. It's like trying to drive a car while eating and talking on the phone, yea you can do it, but why?