Does anyone watch price action ???

[Romeo and Elliott]

Dear Seniors,

Im a firm believe in price action, almost detest indicator-dependent TA. Half the world seems to use RSI etc as gospel. [Is the price in a band all the time with its swing-period = yr RSI period ? ... aagh!!!!]

Is there any forum / thread where TA is done in exclusion of indicators ? ie Price/Volume action alone -
> candle by candle (daily)
> swing by swing (elliotts)
> Price pattern (keeping in mind elliott context)
> S/R levels.
> Fibs

Basically looking for an interactive thread but without RSI, MACD, MFI, Momentum indicator (ugh!) etc.
In dire need.... pls advice

Thanks.

Reason for posting in the advanced section :
The understanding of price and trading on price seems more an exception than a rule. Just like you cant teach a computer to drive a car, there is no mathematical indicator one needs use, just price action, understand the traffic, know the rules, you'll find yourself driving pretty well.

 

[rocky9281]

Dear Seniors,


Basically looking for an interactive thread but without RSI, MACD, MFI, Momentum indicator (ugh!) etc.

The understanding of price and trading on price seems more an exception than a rule. Just like you cant teach a computer to drive a car, there is no mathematical indicator one needs use, just price action, understand the traffic, know the rules, you'll find yourself driving pretty well.

I am trying to do that in this thread. Hope I can help you:

Hi everyone,
I can share with you the way I analyze stocks. Its very different than you have ever seen normally. I don't use indicators, rather I use only price volume.

Why would I like to do this?
I want to form a group with you people here, and I believe that together we can proceed very far. I want to start my hedge fund someday..I know people may think I am insane, its too early to dream too big right now.

I am still a long way to go to achieve my dream results. But I know what I am doing. AND THE BIG THING IS - I HAVE STARTED TO SEE POSITIVE RESULTS.I am a very slow but steady learner, this makes me very confident in myself because I think God has created this universe in such a way, that the tortoise will always win and the hare will always lose.

If all of you are willing to learn how I do things, please reply here or PM me.

Thank you all.

 

[SwingKing]

R n E,

Its good you are questioning this.

My only advise to you would be to not try and re- invent the wheel again. Price action trading appears to be more accurate and certainly it is. But its not so easy as its made to be. In my experience, indicators are helpful and are deceptive. But those who cannot make it with indicators are usually the one's who do not research it properly. Therefore, they do not know how helpful indicators can be. Once one fails with indicators, the next thing that comes to mind is Price. This is natural to every trader. Hence if you are shifting from indicators to price, do it for the right reasons.

There's plenty of price oriented techniques available. But once you use them, you'll know why indicators are good for supplementary analysis. I'll definitely watch this thread closely if it develops.

Tc

P.S. - I trade on pure price. The only reason I supported both price and indicators is because both work. Its just that one needs to know how to use them.

 

[oilman5]

Trading only with price ............is very much possible.i have seen some successful trader to trade only on price......but they r of superior callibre with long longivity in market.They use many yrs price move..............in context.............so from price they can tell probable CONTEXT .They definitely know potent of higher timeframe. THEY use a knack of deciphering............reversal & continuation........an expected time of validity.
But none of them day trade............though may book some profit ,if its achieved within same day.

 

[jagankris]

THEY use a knack of deciphering............reversal & continuation........an expected time of validity.

Oilman ji - Pls can you elaborate more on the "knack of deciphering".

TIA.

Best Regards,
JK

 

[krishere]

nice thread... am also of very much the same idea..... what i look into is see the price action in different time zones....

for example,
1. Know the direction of the stock with the weekly charts
2. take steps based on daily charts
3. watch hourly charts to see if anything specific has happened within the day.

i am v.much of a beginner so will watch this thread v.v.closely.

let me know your ideas.

krishna.

p.s. raunak/SK im coming to the pune meet hoping you will be able to bring about a multi-dimensional image of the market

 

[Caesar]

Hi
I use pure price action for day trading and trade usually in NF.My TF is 5 min and EMA 20 is the only indicator.Been doing this for about a year.Pretty much happy than trading with indicators.Mainly so because whipsaws are the betanoire of indicator trading.
1.
When to enter counter trend?
Wait for the trendline to be broken on strong countertrend movement.Usually after this countertrend move, with trend move tries to test the high in case of bull and low in case of bear and results in higher low or lower low(in case the trend had been a bear) and lower high or higher high(bull trend).
If there is higher high, then the bear trend about to start will be two legs down with on up leg in between.
If there is lower high there will be one down leg .
Similar is the case with lower low and higher low.
The most important thing for trading counter trend is first there has to be a trendline break and then test of the high in case of bull and test of the low in case of bear.

 

[rkkarnani]

Dear Seniors,

Im a firm believe in price action, almost detest indicator-dependent TA. Half the world seems to use RSI etc as gospel. [Is the price in a band all the time with its swing-period = yr RSI period ? ... aagh!!!!]

Is there any forum / thread where TA is done in exclusion of indicators ? ie Price/Volume action alone -
> candle by candle (daily)
> swing by swing (elliotts)
> Price pattern (keeping in mind elliott context)
> S/R levels.
> Fibs

Basically looking for an interactive thread but without RSI, MACD, MFI, Momentum indicator (ugh!) etc.
In dire need.... pls advice

Thanks.

Reason for posting in the advanced section :
The understanding of price and trading on price seems more an exception than a rule. Just like you cant teach a computer to drive a car, there is no mathematical indicator one needs use, just price action, understand the traffic, know the rules, you'll find yourself driving pretty well.

Have a look at VSA threads :

http://www.traderji.com/equities/37083-trading-volume-spread-analysis-vsa-19.html

http://www.traderji.com/advanced-trading-strategies/23128-volume-spread-analysis.html

Looking forward to read more from you in this regard.

 

[shinchan]

Go to any of Saint's threads. :thumb:

 

[Caesar]

Let us consider price action based on my earlier post.
"In a bull,if there is a trend line break with good counter trend momentum,then a higher high gives two legs down."
The down move from bar 4 high is strong and also broke trend line from yesterday's close.Hence there is a break in up trend.
Still one has to look to enter in up trend till there is a higher high or lower high.
Bar 8 has given higher high and hence the end of bull move.
Bar 7 has given lower high on which many would have entered keeping a stop loss above 7 or 4 and SL is hit on the move or bar 8.
It not only trapped out the bears but also trapped on the bulls and hence a very good shorting opportunity.The move should be expected to have two legs down
with one intermediate up leg.Bar 9 is only a pause bar and hence the move down from 8 is only one leg.
Tomorrow there could be gap open and test of the low of the day on the bar before todays close.

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