Price Action Trading Method.

P

pundit

Active Member
#11
#11
Re: Price Action Intraday trading method.

TraderDude said:
Hi All,

Background :
I started my trading journey back in feb-march 2011. I had no idea what i was doing. Blew up more than a lakh blindly. But kept the journey on..

Took a long time to reach here, lots of hard work and dedication.

Today i m posting a method , that i have learned from many trading forum. this is simple method based on price Actions with S/R.

I work from Sunday-Thursday. So i get off on Friday and today i did some intraday trading. I usually do with forex on dailys. But i m starting this thread to post stocks intraday trades. I will posting reasons for entry/exit and will only post on Fridays.

Hopefully some newbie interested might pickup something.

So to start off with here is today's trade of SBI 5m chart, and to prove this works. I will also be posting the trade logs. I use religare pro trading terminal and mt4 for charting.


It will be more helpful if you explain this method a bit more.. Thanks
Click to expand...
 
T

TraderDude

Banned
#12
#12
Re: Price Action Intraday trading method.

Method is quite simple actually. Note that this is a method and NOT A STRATEGY.

We are looking at S/R levels. Now most people cannot identify a S/R level properly. Below are two statements that are always true in any market. Always have been and always will be.

1 . A S/R level is identified where price is rejected MORE THAN ONCE at a level/Zone.

2 . A Support if broken becomes Resistance and vice versa.

3. Support/Resistance are more of a Zone , rather than a particular price point.

4. These will also act as potential targets.

Understand the above points clearly. The S/R levels can be clearly seen on my charts.

Next, we see Price Action(PA) , PA is simply bar patterns on the S/R levels.

The bar patterns include(in order of significance and usage)

1. Pin bar
2. Outside bar
3. Inside bar

Pin bars and Outside bar are very common,easily identifiable and they occur frequently on lower TF and not so frequently on Higher TF.

The PA confirms whether we should enter a trade or not. We do not take trades blindly based on S/R levels.

So basically we identify a good S/R levels and look for confirmations and confluences at that level.

PA gives confirmations. Confluence can be anything from below

  • Fibs levels(50%)
  • Pivots
  • Trend Lines
  • Moving Averages & Crossovers
  • MACD Divergence
  • Round Numbers
  • Harmonic patters
  • Gann
  • Conventional Chart patterns
  • Fib Patterns.

If we get both a confirmation and at least two or more Confluence , we have a very very high probable trade setup and these are the ones we must take and nothing less than this.

I m sure most of you know this material S/R, PA. This info has been available since ages. Nothing new here. But what is important is how to apply this knowledge on charts. This is where many people fail.

Lastly, its patience. The key to finding a good setup is Patience, Patience and more Patience.

So, we will start off with basics(S/R,PA) and then move on to slightly advanced method(PA Confirmation & Confluence).

So in summary , this method is
S/R + PA Confirmation + Confluence + Patience = Profits!!

Let me know if you have any questions...more charts next week!!
 
Last edited:
T

TraderDude

Banned
#15
#15
Re: Price Action Intraday trading method.

timepass said:
Can you give more info about your time frames ?? I see that for intraday (SBI and Tata motors) you have used 5 min, but elsewhere you have also used H1, H4 and daily.
Click to expand...
timepass, this method works on all TF, but first practice on Daily's and weekly's

It requires you to react more quickly on lower TF, hence you must have enough practice before attempting this method on lower TF.
 
adityasaraf007

adityasaraf007

Well-Known Member
#16
#16
Re: Price Action Intraday trading method.

TraderDude said:
[.......]
Let me know if you have any questions...more charts next week!!
Click to expand...
I have one..... Are you my Photocopy??

But seriously..... I use all whatever you have outlined as the basic premise for my Trading..... But still, there's something missing in my approach..... I guess this thread is going to fill that void..... :)

And I want more and more charts from you.... :)

Thanks....
 
P

pundit

Active Member
#18
#18
Re: Price Action Intraday trading method.

TraderDude said:
Method is quite simple actually. Note that this is a method and NOT A STRATEGY.

We are looking at S/R levels. Now most people cannot identify a S/R level properly. Below are two statements that are always true in any market. Always have been and always will be.

1 . A S/R level is identified where price is rejected MORE THAN ONCE at a level/Zone.

2 . A Support if broken becomes Resistance and vice versa.

3. Support/Resistance are more of a Zone , rather than a particular price point.

4. These will also act as potential targets.

Understand the above points clearly. The S/R levels can be clearly seen on my charts.

Next, we see Price Action(PA) , PA is simply bar patterns on the S/R levels.

The bar patterns include(in order of significance and usage)

1. Pin bar
2. Outside bar
3. Inside bar

Pin bars and Outside bar are very common,easily identifiable and they occur frequently on lower TF and not so frequently on Higher TF.

The PA confirms whether we should enter a trade or not. We do not take trades blindly based on S/R levels.

So basically we identify a good S/R levels and look for confirmations and confluences at that level.

PA gives confirmations. Confluence can be anything from below

  • Fibs levels(50%)
  • Pivots
  • Trend Lines
  • Moving Averages & Crossovers
  • MACD Divergence
  • Round Numbers
  • Harmonic patters
  • Gann
  • Conventional Chart patterns
  • Fib Patterns.

If we get both a confirmation and at least two or more Confluence , we have a very very high probable trade setup and these are the ones we must take and nothing less than this.

I m sure most of you know this material S/R, PA. This info has been available since ages. Nothing new here. But what is important is how to apply this knowledge on charts. This is where many people fail.

Lastly, its patience. The key to finding a good setup is Patience, Patience and more Patience.

So, we will start off with basics(S/R,PA) and then move on to slightly advanced method(PA Confirmation & Confluence).

So in summary , this method is
S/R + PA Confirmation + Confluence + Patience = Profits!!

Let me know if you have any questions...more charts next week!!
Click to expand...

Thanks a ton TraderDude.. Thats what I was looking for, I am studying Saint Flow method now a days, also gone thr PIN bar formation.I think it will be more helpful if you guide us here step wise step the PRICE ACTION METHOD.

I have recently started trading Forex and I hope will get lots of help from you.

Thanks again.
 
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