DislikedI've just added this little story to another topic, I hope you don't mind if I quote here a few lines too from that long post.
What is price action?
I always enjoy imagining the chart as a warzone. The United Army of Bulls are trying to fight the Paramilitary Organization of the Grizzly Bear Warriors in this neverending battle. Imagine it like a real war: with weapons (news, events) with supplies (support & resistance), trenches (fibonacci & pivot lines), etc.
When the bearish organization is attacking you have to act as a general, so go on and open up the map of the warzone for god's sake! Have a quick look, because people are dying out there. Okay, what do we have on the map (chart)? Until now the bulls were progressing but they are tired now and couldn't breach the next critical defend line of the bears (means price is bouncing off a resistance line). What will happen now? Bulls will reorganize and try to attack once or twice more (testing the resistance line). If the defense line is strong, they won't be able to get through, that critical line remains intact. The bear warriors immediately notice the weakening in the bulls army, they're planning a counter-attack. This is the time when nothing happens in the warzone, but everybody knows sooner or later something's gonna blow. You quickly make use of the time to see what's going to happen. You immediately draw the previously tested critical line to your map, and count on that bear counter-attack. How strong will they get? This puts up the question: how far could they possibly fight-back?
On the map you have to draw now the bull trenches. Daily, weekly Pivot, Fibonacci lines, etc, what you consider important. After you set up everything you contemplate a bit on from where do you consider the counter-attack active? Depending on the timeframe this could mean 20-30pips (let's say yards in this fantasy-world) from the critical, unbreached resistance line. When the battle continues you watch how things evolve and shout a hurray and a 'Go bears, go!' every time when the bears can take another important trench. When they find stout resistance (this is called support in forex if it's a downtrend... funny) (you know this from a Doji candlestick for example) you take a closer look, and move your S/L (stoploss) to the very next already-conquered trench which you just left behind. Then wait until something happens.
The bulls gather some reinforcements and shoot the bears in their hams and everything starts from the beginning...
I hope this little story of mine could help some of you out there who don't know what the heck is 'price action' yet.
Have a great weekend everyone! MarkIgnored
it makes you sound like you are taking a side though.
my question to you is this.. is it better to take a side and be loyal (meaning if you are for the bulls, always buy at opportunity)? or is it better to switch sides (buy or sell depending).
i guess what i'm asking here is.. is it better to be specialized in either buying or selling rather then buying and selling(switching sides).
anyone who has an idea, do reply!
BAM BAM BOOM! -bravado