Learning Price Action trading

Having looked at so many indicators i finally feel that price action with fundamentals is something i am planning to trade on. So to beging with the learning process i have been going over the James16 thread.

Is there any stuff any one aware of to accelarate the learning process

Thanks.

I'll offer you some pointers as I trade naked and have done so for quite some time ... (nothing like everything swinging in the wind) ...

1. If trading the currency markets, place less importance on candlestick patterns on any timeframe less than perhaps a daily chart (even that is debatable in fx for me) ... this is a 24hr market, one mans close is anothers open, not like exchange traded markets where things really do have a defined open and close ... really the only defined close and open prices are on a weekly chart. I am not saying ignore them totally, I would just place less importance on them.
2. Don't be too precious with your support and resistance levels, we are playing in a retail market, we aren't trading real prices, just what is served from whichever broker we are with, so a few pips here or there really means nothing, in fact a spike through a level can tell you more than a bounce.
3. If trading chart patterns, I would refrain from anything less than hourly charts, others will disagree, but for reliability and reward hourly and above are better.
4. Have a read of Bulkowsky's books if you can get a hand on them for general pattern statistics.
5. Don't forget the y-axis, i.e. time in all of this, it really can give you some clues. How long something moves for is just as meaningful as how far.
6. Have comfort in that you are developing skills that means you can trade in any market, off any charting platform at any time, anywhere.
7. Almost all methods can be profitable with sensible money management, I threw up a sample of a period of 100 trades that I did (all price action trades) recently as proof of this (have a look here: http://www.forexfactory.com/showthread.php?t=74304).
8. If you can find a good mentor to guide you through, sometimes it can be worth the money (within reason).
9. Forget fibonacci retracements (no comment on expansions), I know this is a personal view, but really most retracement turns have a price reason.
10. Think in terms of decisions, what does a strong move from an area tell you about the traders that instigated it, and what will it mean if it returns here soon, or if it returns sometime later (usually means two different things).
11. Congestion is just as important as breakaways.

Ok that will do .... best of luck.

Cheers
Akuma

really good stuff of jacko here at FF:

http://www.forexfactory.com/showthre...ighlight=jacko

Thanks Akuma. What you have give here a wonderful pointers that will help me onr anyone looking to trade PA in the right direction.

Thanks Spence. Reading the thread... good stuff

http://www.forexfactory.com/showthread.php?t=159471

If you're following Price action, Murray Math looks like a great tool.
Read this thread and make up your own mind.

Do the hard work that all the newbies want to avoid by getting some hot tip, EA, or fancy indicator, the hard work all the old pro's tell you to do.


Best regards

Dale

nothing beats screen time and your trading hours ,
if possible try finding something called vhand tool for mt4 in this forum, it allows u to simulate past action of a currency , and trade them ...
its a good way to gain screen time ... if I am not wrong its in skunny's thread ...

vhands is great (especially for rainy weekends ), but this version done by quantem is easier to understand for mt4 newbies. here you go

http://www.forexfactory.com/showpost...69&postcount=1

Hello,
I highly suggest you read Feb2865 thread, the thread is not as active because the owner of the thread is having some health issues but once you completly read the thread you get alot out of it and I myslef along with some other members still post alot with chart setups.

best of luck.

The easiest way I learned P/A was to remember the basics of market movement.

RETRACEMENTS

No matter what timeframe you trade, the market will Always have retracements. Though, retracements may happen more often on a 5min chart than a Hour chart. As a trader, if you are able to "time" the retracements of a trend, you an anticipate your next entry. For example, if there is a strong uptrend currently in play, just wait for validating signals of a retracement. Give the market 3-4 candle closes, look for candlestick formations, and then place an entry order in the direction of the retracement.

One of the best tools to use is Candlestick formations and Trendlines. That is pretty much all you need to trade without a lot of indicators. One you get good at it, you can trade without those tools as you will be able to "see" what's going on in the market.

So, just rememeber, retracements ALWAYS happens. A retracement can either give you an entry into an estabished trend or an entry in a new trend direction.

What validating signals do you look for? Is it just a matter of recognizing candle patterns?

Indicators cant be traded on their own right.

We should use indicators in the context of the overall market picture .

The simulatore is briljant!!!!!!!!!!!!!!!!!!!!!!!!!!!

1, 5, 15, 30M, and 1H candlesticks are all the same across timezones, markets, etc. so I don't think that is particularly good advice.

Mostly recognizing candle reversal patterns such as the Hammer and Engulf. Also using market momentum exhaustion and a trendline break system.

This overly simplified and as someone else said nothing beats screen time.

1. Pick a time frame.
2. Draw support and resistance lines.
3. Patiently wait for price to reach one of the boundaries
4. If price bounces off resistance - sell, if it bounces off of support - buy.

The more screen time you put in, the better you will get determining the probability of price bouncing or breaking out.

"Forget fibonacci retracements (no comment on expansions), I know this is a personal view, but really most retracement turns have a price reason."

I use fibs on all my trades. Whether it is used for exiting a trade or getting in.
Once you understand how to project p.a. Fib levels work great. But how ever, yes there are times when a .382 fib retrace level is not touched and the trend to powers up or down further without a retracement.
On the contrast, You might expect a .618 fib level to be a strong support or resistance, (waiting for reverse at this level) and PA breaks through .618 to form a perfect "V". Even though there are exceptions, fib levels is a great PA indicator.

Nice use of Marketscope. Yeah, I use moving average for channel, too, only I go for 'weights' on either side of a 34 linear weighted moving average line. Your moving average channels PA. What moving average do you use?

Agreed; the same thing occurred to me. Also, people are different; some people are cut out for daily and weekly bars, and others have more of a short-term or scalping disposition. Down with time-frame snobbery I say!!