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Beginner's Question on Price Action

  • Post #1
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  • First Post: Oct 23, 2019 11:00am Oct 23, 2019 11:00am
Fellow rookies,


What information feed does the intra-day trader use to identify sudden areas of strength/ weakness in a particular pair
(ie the trader wants to get in/ out during the day – higher volume, lower pips each time)

Note I am concerned here purely with price action (on the chart) and not any outside news events

[Presume he/ she is looking at a very short timeframe and there is a sudden indication or green light to proceed with the trade]

Also are you better trading with very liquid pairs (major currencies) which contain potential of high volumes of cash in/out


Best regards,
Kenny
Kenny
The name give you a good hint. Price action. The combination of price and time. You have silent price movements and wild movements. Like sailing. Most avaible informations are clutter the basics. Price is going from inactive to activ or other direction. Price will never speed up forever, also never stay at one point.
Market is more simple as you think.
Quoting KennyBoy02
Fellow rookies, What information feed does the intra-day trader use to identify sudden areas of strength/ weakness in a particular pair (ie the trader wants to get in/ out during the day – higher volume, lower pips each time) Note I am concerned here purely with price action (on the chart) and not any outside news events [Presume he/ she is looking at a very short timeframe and there is a sudden indication or green light to proceed with the trade] Also are you better trading with very liquid pairs (major currencies) which contain potential of high...
I basically concentrate on the full trading chart; besides support resistant levels help me to understand the status of market trend!
Thankyou for your responses.
Michael, looking at the chart alone what are the triggers which tell you when a price is about to become active and you get these movements (either silent or wild)?
Also what duration of chart do you analyse to find out where this action is?

Regards,
Ken
Kenny
Quoting KennyBoy02
Thankyou for your responses. Michael, looking at the chart alone what are the triggers which tell you when a price is about to become active and you get these movements (either silent or wild)? Also what duration of chart do you analyse to find out where this action is? Regards, Ken
It is also a combination of time and price. What you want invest, time, for what target ranges, price.
A good start is to think about that. What is your time to spend for trading? How many pips you target?
After that look for a timeframe that suit this and not change life to suit your timeframe.
I have two combination setups for different situations. One for the time i can sit longer infront of market and one if i have less time.
Why a combination? Because i like to have a larger period visible and one for execution my trading desicions.
Make the chart clean and learn to trade without all the fancy tools. I not often draw lines. No need for it.
Market is more simple as you think.
Quoting KennyBoy02
Thankyou for your responses. Michael, looking at the chart alone what are the triggers which tell you when a price is about to become active and you get these movements (either silent or wild)? Also what duration of chart do you analyse to find out where this action is? Regards, Ken
You ask many good questions and are getting few good answers.

Let me get you started:
1. Understanding price action is key. Price action occurs at a bar/candle levels, price swing levels and different sized price swing levels.
2. Choose a time frame that fits your life-style. FOREX is difficult to "day-trade" unless you are awake during during London hours. Multi-time-frame-analysis is a sucker game for rookies. It's difficult to recommend a specific time frame but the H1 is not bad to get started with. Whatever time frame you choose stick with it and don't go back and forth between time frames. I can't say how important this is.
3. You mention "triggers". This is an excellent concept. Triggers have much to do with overall price action in the context of bar/candle price action and swing level price action.
4. Money management: There is much that can be said about this topic and it is usually ignored by rookie traders. It should be studied,

Anyway the rookie section here at FF is quite frankly full of BS. There is little available to rookie traders to get them started and the Mods here at FF don't care as long as advertisers are paying the bill. So it's difficult for rookies to get a good start.
Freedom is not free
I appreciate you sharing your insights, Abe.
It is difficult to get experienced traders to part with their expertise (believe the unwritten rule is they want the rookies to share the same pain as they did when they started). Also there is a lot of disinformation out there.

If I may, I would like to expand on the answers you have provided (I wont take up too much of your time)

(1) For price action and candles, what do you take as confirmation of a trend reversal: do you look for one significant bullish or bearish candle or a sequence of candles (over which timeframe)

(2) Also how do you assess when that new trend is losing steam or momentum?

(3) For breakouts, from a certain range or level of support/ resistance - do you always look for that level to be tested first (ie the breakout, the pull-back and second kiss)? Again how do you assess this breakout has legs or momentum?

Good luck in your own trading efforts and enjoy your weekend.


Best regards,
Kenny
Kenny
Quoting KennyBoy02
I appreciate you sharing your insights, Abe. It is difficult to get experienced traders to part with their expertise (believe the unwritten rule is they want the rookies to share the same pain as they did when they started). Also there is a lot of disinformation out there. If I may, I would like to expand on the answers you have provided (I wont take up too much of your time) (1) For price action and candles, what do you take as confirmation of a trend reversal: do you look for one significant bullish or bearish candle or a sequence of candles (over...
1. I use bars instead of candles but they're very similar. For an overall potential trend reversal I use swing level signs rather than bar level patterns. A good example is in a down trend price is generally making Lower highs and Lower lows. When a Higher low is printed then I become interested in a potential trend reversal. Then I might use a bar level pattern to enter. I will be going over this in more detail in my new thread "Fundamental of Trading for Rookies".
2. Assessing whether or not a trend is losing steam can be done in various ways. Is the steepness of the trend leveling off. Are the impulse swings getting smaller?
3. Trading breakouts of ranges. This depends on where the range has occurred. But in general once a breakout occurs we should wait for a retest and see what happens. Breakouts are often wash/rinses.

Any way as I said I'll be answering many of these questions as my new thread progresses. Hope you'll participate.
Freedom is not free
i will use pin bars, engolfers morning/evening stars, inside bars, dark cloud cover, peircing pattern, rising three falling three, dojis just a few that i like need to know how to trade them though
any of these patterns can be used as conformation of entry when used in the right location like SR fibs moving averages round numbers examples
Turn your wounds into wisdom
Weekly silver chart
here is an example this weekly chart has potential support cumming up being the weekly 200sma a channel and a potential 12345 eliot wave pattern bearing in mind a truncated 5th is rare so i expect a 5 wave push here

the entry will be on daily needs to find support and give entry candles have to wait and see what we get lol
Attached Image (click to enlarge)
Click to Enlarge Name: weekly look daily 12345.png Size: 169 KB
Turn your wounds into wisdom
Quoting Bk55
Weekly silver chart here is an example this weekly chart has potential support cumming up being the weekly 200sma a channel and a potential 12345 eliot wave pattern bearing in mind a truncated 5th is rare so i expect a 5 wave push here the entry will be on daily needs to find support and give entry candles have to wait and see what we get lol {image}
Hi Bk55,

Why not just Trade PRICE - STRUCTURE - FLOW

The longer a SetUp takes to materialise and the longer a Trade takes to conclude the more chance there is for Market Conditions to Change against us.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 9th Nov 19 Silver Spot M1 Observations.png Size: 126 KB
Click to Enlarge Name: 9th Nov 19 Silver Spot M1 Observations 2.png Size: 131 KB
Click to Enlarge Name: 9th Nov 19 Silver Spot M1 Observations 3.png Size: 132 KB
Click to Enlarge Name: 9th Nov 19 Silver Spot M1 Observations 4.png Size: 125 KB
Click to Enlarge Name: 9th Nov 19 Silver Spot M1 Observations 5.png Size: 136 KB
Quoting stevepatt
{quote} Hi Bk55, Why not just Trade PRICE - STRUCTURE - FLOW The longer a SetUp takes to materialise and the longer a Trade takes to conclude the more chance there is for Market Conditions to Change against us. {image} {image} {image} {image} {image}
hey steve

Price action structure for me comes first. If theirs a pattern or indicator that can add weight of evidence like in the Silver chart theres EW and a moving average. The Chikou span and price is above cloud also for example but where do you draw the line.
I feel it could increase trader participation volume due to possibly having EW traders on board and cloud and so on.

Nice examples of structure
Turn your wounds into wisdom
Quoting Bk55
{quote} hey steve Price action structure for me comes first. If theirs a pattern or indicator that can add weight of evidence like in the Silver chart theres EW and a moving average. The Chikou span and price is above cloud also for example but where do you draw the line. I feel it could increase trader participation volume due to possibly having EW traders on board and cloud and so on. Nice examples of structure
Hi Bk55,

Institutional Traders are not watching Indicators or Elliot Waves.

Where ever Orders are, Stop or Limit, then that is where Price will go.

The Thinner and more Inefficient moves will see Price return to fill any Gaps and Test the Origins of the move.

What ever the TF we Trade, Price will do the same things it will Break a Level and then Return to Test that Level.

This is the Fractal Nature of the Markets
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 9th Nov 19 Silver Spot W1.png Size: 93 KB
Click to Enlarge Name: 9th Nov 19 Silver Spot D1 Observations.png Size: 107 KB
Click to Enlarge Name: 9th Nov 19 Silver Spot H1 Observations.png Size: 197 KB
Quoting stevepatt
{quote} Hi Bk55, Institutional Traders are not watching Indicators or Elliot Waves. Where ever Orders are, Stop or Limit, then that is where Price will go. The Thinner and more Inefficient moves will see Price return to fill any Gaps and Test the Origins of the move. {image} {image} {image}
Nice. So many follow unsuitable tools that blind. Market love that newbies use all the indicators, love that they hang on candle patterns, like you count points.. I strongly recommend drop so many misleading informations and break free to get the only what counts. Make on the way and watch chart naked. Trade what you able to see, nothing more.
Market is more simple as you think.
  • Post #15
  • Quote
  • Edited 4:43pm Nov 9, 2019 4:20pm | Edited 4:43pm
Quoting stevepatt
{quote} Hi Bk55, Institutional Traders are not watching Indicators or Elliot Waves. Where ever Orders are, Stop or Limit, then that is where Price will go. The Thinner and more Inefficient moves will see Price return to fill any Gaps and Test the Origins of the move. What ever the TF we Trade, Price will do the same things it will Break a Level and then Return to Test that Level. This is the Fractal Nature of the Markets {image} {image} {image}
hi steve

i think your on the right track with price structure but from my experience i have found that applying technical analysis to price structure ike EW harmonics ect give me the edge it works very well i see good returns with little risk
i took the time to master these patterns and there traits so i get a good idea how each pattern will play out buy studying them i know where EW trader will have there stops for example and i know what pattern to expect in the 3 wave 4 wave the thing is with EW most dont have the time to study it its very demanding and can take some years to learn
I will post some examples of the 345 waves and show a few of the things i look for when i have time
Turn your wounds into wisdom
Quoting stevepatt
{quote} Hi Bk55, Institutional Traders are not watching Indicators or Elliot Waves. Where ever Orders are, Stop or Limit, then that is where Price will go. The Thinner and more Inefficient moves will see Price return to fill any Gaps and Test the Origins of the move. What ever the TF we Trade, Price will do the same things it will Break a Level and then Return to Test that Level. This is the Fractal Nature of the Markets {image} {image} {image}
theres a few possible EW pattern on daily gbp crosses but nothing i fancy i dont like posting historical set ups i find that pointless its easy to see them when they have already played out not being a one trick pony I found a different potential set up will post some EW when i spot something live.

Silver could take awhile to set up so i thought i would share this one on H4 so we can see it play out live next week if it sets up.

AUD USD There is a weekly bearish candlestick formation at trend line resistance and a h4 head and shoulder pattern possibly forming around structure with cbo im watching. I will post entry if i get one and keep you guys updated with progress. tp1 means first take profit
We have cloud candlesticks and a pattern in this one.
weekly & h4 info on charts bellow
Attached Image(s) (click to enlarge)
Click to Enlarge Name: AUD USD WEEKLY PEERCING PAT.png Size: 175 KB
Click to Enlarge Name: AUD USD CLOUD H4.png Size: 209 KB
Turn your wounds into wisdom
  • Post #17
  • Quote
  • Edited 11:18pm Nov 9, 2019 11:01pm | Edited 11:18pm
To understand the Future it is important to understand the Past...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 10th Nov 19 AUD:USD H4 Observations.png Size: 179 KB
Click to Enlarge Name: 10th Nov 19 AUD:USD M15 Observations.png Size: 175 KB
  • Post #18
  • Quote
  • Last Post: Nov 9, 2019 11:06pm Nov 9, 2019 11:06pm
Quoting stevepatt
To understand the Future it is important to understand the Past... {image}
I agree
Turn your wounds into wisdom
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