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Price Action Theory

  • #21
  • Dec 3, 2017 7:28am Dec 3, 2017 7:28am
awesome thread Jmn!, even with all those indicators on the chart you can still see the price action.
after all, we are not trading the chart we are trading price.
if it works for you do it, that's all that matters not what it looks like...
  • #22
  • Dec 3, 2017 2:13pm Dec 3, 2017 2:13pm
Quoting dogdays713
awesome thread Jmn!, even with all those indicators on the chart you can still see the price action. after all, we are not trading the chart we are trading price. if it works for you do it, that's all that matters not what it looks like...
I think this statement says a lot: : "even with all those indicators on the chart you can still see the price action". Are we trading price action or indicator action? So far I see much about indicators and little to nothing about price action???
  • #23
  • Dec 3, 2017 4:59pm Dec 3, 2017 4:59pm
Quoting Winston Reed
{quote} I think this statement says a lot: : "even with all those indicators on the chart you can still see the price action". Are we trading price action or indicator action? So far I see much about indicators and little to nothing about price action???
my apologies to jmn and everyone my post was not clear, what I meant was one of the charts had like 12 indicators on it and you can still very clearly see the price action
  • #24
  • Dec 3, 2017 5:21pm Dec 3, 2017 5:21pm
Quoting Winston Reed
{quote} I think this statement says a lot: : "even with all those indicators on the chart you can still see the price action". Are we trading price action or indicator action? So far I see much about indicators and little to nothing about price action???
This is why indies were written Winston. For example, people think pitchforks are just trendlines, but there is more to them than that. The entire point of this thread is to show that indicators can be very useful, but like any tool the trader must know how to use them.
If you are good at something, never do it for free--Joker
  • #25
  • Dec 3, 2017 5:22pm Dec 3, 2017 5:22pm
Quoting dogdays713
{quote} my apologies to jmn and everyone my post was not clear, what I meant was one of the charts had like 12 indicators on it and you can still very clearly see the price action
No worries, I understood what you meant!
If you are good at something, never do it for free--Joker
  • #26
  • Edited 7:51pm Dec 3, 2017 7:14pm | Edited 7:51pm
Quoting jmn5611
{quote} This is why indies were written Winston. For example, people think pitchforks are just trendlines, but there is more to them than that. The entire point of this thread is to show that indicators can be very useful, but like any tool the trader must know how to use them.
"The entire point of this thread is to show that indicators can be very useful". But you named the thread "Price Action Theory" ???? I'm not a fan of indicators especially if you have an understanding of price action, So far you present nothing in the way of price action.

Indicators are profusely marketed by brokers for a reason. Trading markets have been available to anyone with a few hundred bucks for some time now but most wanna-be traders don't have a clue about trading so they are lured in by brokers hawking myriads of indicators with the assumption that they will provide a path to profit. So far I have not seen anyone able to use indicators profitably. At least anyone able to demonstrate it. The profitable traders I know don't use indicators. They use price action, but most are not really even able to describe price action without using an indicator for assistance.

I have read Brooks but I'm not very familiar with Gann , Edward's and Magee but you don't provide even a smattering of how any of them use price action in their trading.

You use the word "theory" in your title. Theory is a concept perhaps thrown about haphazardly by lay persons but I assume you are using it seriously here in this thread. Do you understand what a theory is? I do because my Master's degree required a course in Theory,.

So far the thread is about indicators and not price action and there's nothing wrong with that. But so far there's nothing about price action.

Pitchforks are not indicators. They are nothing more than a set of 3 specialized trend lines that describe the path of price but in no way tell one to buy or sell. It is the price action within and around the forks that suggest buying and selling.

So I know this sounds a bit challenging. If this thread is really about indicators then so be it and I will stand down as I have no interest in indicators. I'm even open to understanding price action in the context of indicators but you would need to be very specific about the price action.

Take care and good luck with the thread.
  • #27
  • Dec 3, 2017 7:55pm Dec 3, 2017 7:55pm
Quoting dogdays713
{quote} my apologies to jmn and everyone my post was not clear, what I meant was one of the charts had like 12 indicators on it and you can still very clearly see the price action
So you still highlight my point: The price action is in the background of the web of indicators. Does anyone really know what price action is. If you do can you intelligently talk about it?
  • #28
  • Edited 8:13pm Dec 3, 2017 7:59pm | Edited 8:13pm
Quoting jmn5611
So at the kindergarten level, I can see there is a pullback on the chart. How strong is it? Should I try to short it? A revised version of the Alien template says not so much. If it is noticed, all of these charts say the same thing in different ways. Things are clear. That is the benefit of using multiple templates. {image}
Are you listening to what you are saying!!! LOOK AT THE CHART. YOU HAVE four indicator sections with indies and one small section with price action that is so small you can't see it! Change the title to "Indicator Theory" There is zero price action theory!!!
  • #29
  • Dec 3, 2017 9:55pm Dec 3, 2017 9:55pm
Quoting Winston Reed
Pitchforks are not indicators. They are nothing more than a set of 3 specialized trend lines that describe the path of price but in no way tell one to buy or sell. It is the price action within and around the forks that suggest buying and selling. So I know this sounds a bit challenging. If this thread is really about indicators then so be it and I will stand down as I have no interest in indicators. I'm even open to understanding price action in the context of indicators but you would need to be very specific about...
One reason I started this thread is that many traders do not even know what an indicator is. To be clear, the only kind of chart with no indicators on it is a line chart of closes, highs, or lows. A line chart.

Any other kind of chart has indicators on it. That would include pitchforks. So if you really want to learn about Price Action Theory, you must present a chart and we can study it. I wish you the best.

Quoting Winston Reed
{quote} Are you listening to what you are saying!!! LOOK AT THE CHART. YOU HAVE four indicator sections with indies and one small section with price action that is so small you can't see it! Change the title to "Indicator Theory" There is zero price action theory!!!
All charts should be read from the top down. Not from the bottom up. That chart was of a pullback, to determine the strength of the pullback, we have to find the right tools so we are not guessing. Is this pullback really just a bull flag? Or is it the start of trend reversal? Questions like these can be answered with indicators but the price is at the top for a reason.
If you are good at something, never do it for free--Joker
  • #30
  • Dec 3, 2017 11:32pm Dec 3, 2017 11:32pm
A set up on this chart. Can you see it?
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If you are good at something, never do it for free--Joker
  • #31
  • Dec 5, 2017 7:23am Dec 5, 2017 7:23am
Nice and steady run up
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If you are good at something, never do it for free--Joker
  • #32
  • Dec 9, 2017 3:08am Dec 9, 2017 3:08am
I think the en vogue thing so say to sound like a sophisticated trader is to bash indicators. But every one who uses a candle chart is using an indicator. I thought that I would try see how many indicators I could base around price action, and give me the clearest picture possible of every aspect of price action. I came up with a chart that has 21 indies on it.

1. It shows session opens and closes.
2. It shows tick volume peaks and troughs
3. It shows daily weekly and monthly ranges
4. It shows a multi time frame view, without flipping charts
5. It shows news
6. It shows waves
7. It shows dynamic and static support and resistance.
8. It major and minor swing highs and lows
9. And most importantly, it still very clearly shows price and price action candles.

Indicators are not bad, but there are some bad traders. I am not targeting anyone in particular, just adding to FF content while it is on my mind.
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If you are good at something, never do it for free--Joker
  • #33
  • Dec 11, 2017 3:31am Dec 11, 2017 3:31am
In Frankfurt and London the bulls have asserted themselves, looks like not much will happen before New York. Price has hit the weekly pivot without much energy. Short and medium term momentum still favor the bulls, range expansion probability is 100%
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If you are good at something, never do it for free--Joker
  • #34
  • Dec 11, 2017 6:17pm Dec 11, 2017 6:17pm
Update. The market has transitioned from long to short as the American bulls were unable to hold the line and they gave up and encouraged the bears. Entry short is the Bearish Engulf after the strong shooting star. Probability for range expansion remains 100%
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If you are good at something, never do it for free--Joker
  • #35
  • Dec 12, 2017 1:46am Dec 12, 2017 1:46am
Here is an interesting example of how tick volume can come into play. It looks like the bulls wanted to take price past the the daily pivot. They were met by bears and the tick volume spiked. So on this first attempt at common resistance the bulls failed.
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If you are good at something, never do it for free--Joker
  • #36
  • Dec 12, 2017 2:06am Dec 12, 2017 2:06am
The completion of the next bar shows us that the bears put the pulls to flight, producing an bearish outside engulfing bar. They will want to take out that double bottom at the weekly low point. That is where the bulls will try to hold the line.
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If you are good at something, never do it for free--Joker
  • #37
  • Dec 12, 2017 2:42am Dec 12, 2017 2:42am
London Open. The bulls redouble their efforts and try to crush the bears, the bears will fall back to the weekly pivot and the weekly high. The monthly candle is still bearish, so the bears still have control, but the bulls are trying hard.
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If you are good at something, never do it for free--Joker
  • #38
  • Dec 12, 2017 3:27am Dec 12, 2017 3:27am
Quoting jmn5611
The completion of the next bar shows us that the bears put the pulls to flight, producing an bearish outside engulfing bar. They will want to take out that double bottom at the weekly low point. That is where the bulls will try to hold the line. {image}
Is this for your own benefit or to assist others ? Did you trade the Bearish engulf ? This makes no sense it's just commentary without substance. No talk of how you traded it or if you were to trade it , what should be done ? SL placement if no follow through with engulf ? You were specific in saying they will want take out the DB at weekly low but no time reference, when ? next couple 30 min bars ? next week ? Then following bar turns out to be very bullish but no talk of how that has just likely crushed the people who traded the Bearish engulf. Very odd price action theory you seem to have.
If this is for yourself then fine but as you have senior member status there are likely people following what you say and what you have said is next to useless with nothing to say about how you deal with what you have interpreted.
  • #39
  • Dec 12, 2017 3:32am Dec 12, 2017 3:32am
Quoting EfYou
{quote} Is this for your own benefit or to assist others ? Did you trade the Bearish engulf ? This makes no sense it's just commentary without substance. No talk of how you traded it or if you were to trade it , what should be done ? SL placement if no follow through with engulf ? You were specific in saying they will want take out the DB at weekly low but no time reference, when ? next couple 30 min bars ? next week ? Then following bar turns out to be very bullish but no talk of how that has just likely crushed the people who traded the Bearish...
FU, if you look at that template closely there should be no reason whatever to trade that mess. My template even reminds that the market is ranging. Not only is it ranging but the range is narrow. Study the entire picture if you want to learn. This not beginner stuff.
If you are good at something, never do it for free--Joker
  • #40
  • Dec 12, 2017 3:39am Dec 12, 2017 3:39am
Looks like the bears have pushed the bulls back again, but on lesser tick volume. Stalemate. Maybe New York can show us the way. Probability of range expansion remains at 100%
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If you are good at something, never do it for free--Joker
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