Again! Specifically, what is price action?

Hi,FF trader. Just want to know what is price action? Is it something call pin bar inside outside or anything else? Now i'm learning how to identify support and resistance.

Best Regards,
Noobie Trader

Hello FF Trader,

Go to 2ndkiesforex website by Chris Capre to know about price action trading.

fantasy

I think price action is a bit of a fancy term to just mean price change.

Trending, Ranging, Swinging could all be different types of price action. I guess by trying to label them, and believing they will continue, we no longer believe it is random but actually have a strategy to trade them.

Price action, is simply the price movement itself.
Some traders, trade the price action with no indicators, others trade the price action with indicators, and others don´t trade price action, only trade indicators.

eurusdthb,

I have read through your other thread and I can understand your frustration with what indicator/system/method to go with, people finally tell you forget about indicators and to focus on price action and here we are trying to find out what the heck price action actually is but people even have varying opinions about what price action is!

I will provide my opinion and advice, it is not the holy grail and I do not promise you fortunes if you follow it.

FORGET EVERYTHING, forget every indicator you have heard of, every system you have read up on, in all honesty I would encourage you to forget this whole forum but short of doing that I would suggest at least forgetting about the trading systems section of this forum.

Now open up your trading platform and open a chart, no indicators, no grid lines, you should see nothing but candlesticks. Just sit and watch. You will start noticing a lot of things, different shaped candlesticks, different combinations of candlesticks. Don't worry about what the correct names are for each of these, it is irrelevant.

What is important is to INTERPRET what the candlestick is telling you, what is a candlestick? It is not just a random object on your screen, it is a story, it is telling you what has happened over a certain period of time depending on what timeframe you are on, for arguments sake lets choose a 1 hour chart, each candle is telling you exactly what has happened in the last hour, where price opened, where it closed and what high and low it reached. This is all good and well but what does it MEAN? Turn each candle into a story written in words and then read that story back to yourself, and I mean that, write an actual story even get some creative flare in there, the story is only going to be a few lines long but do this for a few candles in a row continuing the story where you ended the last one and then read it back to yourself, tell me if you don't have a better understanding of what is happening on your chart now.

That is the goal, to open up a chart and UNDERSTAND what you are looking at, after a while you won't need to write stories anymore because you will naturally start writing these stories in your mind quick enough to know the whole story after only a short time looking at a chart.

This is only the first step but I realise my post is already long and my ramblings might not even be wanted so I will stop there for now.

Agree with every word Kyle has said. And wanna add that whatever the strategy you're following after taking time observing the charts is ... whatever the strategy is ..... IT WON'T WORK AS IF YOU DON'T FOLLOW PROPER MONEY MANAGMENT ..... and if you followed any strategy based on anything even if you gonna simply sell the high and buy the low or sell and buy with reversal candles or whatever it's .... if you follow proper money management you gonna eventually win .... One more thing, patience is KING. Never enter a trade that doesn't fit all of the strategy conditions ... all of them .... Good luck

Money management isn't an edge. So it's incorrect to say that following any strategy will win with proper money management. There must be an edge to the strategy.

Point your index at any strategy in the trading systems forum, I'll follow it for a week/month and turn out in pips.

Different people will say different things, most think it's reading totally useless candle stick patterns, there sadly wrong.

My take, is it's the raw tick data, although you can view this live on any TF, it's how the price moves, down slowly for 10seconds, 2 seconds to climb back top the top = someones accumulating, ofcourse unless your a scalper this is kinda pointless.

And correct MM is not an edge, it's merely a way to keep your losses at an acceptable level so you can ignore it and keep funding the account and pretend to yourself your doing fine and nearly there.

Good SL placement and movement as the trade goes is ofcourse KEY, if you get in and it goes in your favour, tighten SL to the previous high / low, it's not rocket science.

Profiting ( not winning ) is about loads of little things and working DAMN hard!!

You'll never meet ALL of your requirement, trying that hard to not lose will = never placing a trade in the first place.

I do meet 'em Sir. They're few like 4 among the week but I do

Don't have too many requirements then, keep it simple I see some of the charts on here and they really hurt my eyes. I'm baffled how anyone can navigate their way around them.

You'll always find 1 of your lines / indicators worked for every move, but ofcourse unless you know which 1 is going to work ahead of time, it's kinda useless, but looks great in back test, which fools them to believe they can use it live.

2SMA with envelope ranges, is all I'm using currently. 8 lines in total but they all kinda move together, so not that confusing. direction of the 60SMA then play the range of the 26SMA with the 60's direction, simples!!

Learn to identify and read these:

Impulsive and corrective market moves
Identify support and resistance levels
Pinbars and their relevance in reversals

I see someone already recommended 2nd skies for learning.

All the best eurusdthb