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The One: Price Action and Reaction

  • #421
  • Nov 25, 2015 6:12am Nov 25, 2015 6:12am
Quoting eaglestar
I remember someone wanted to see some trade examples. For the Aussie charts I show the 2 that I worked on here to show that you can come to the same conclusion using the same tools. These trades I post here are for example only. Remember, the Andrews Pitchfork is a modified and Simplified Action Reaction Set. We will talk about entries and stop placement in the future. Again I recommend reading medianline.com/articles for free articles. All the best, ES {image} {image} {image}
hy i was just using simple trendlines for my trading, but i have a feeling u call these action reaction lines?
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  • #422
  • Nov 25, 2015 7:38am Nov 25, 2015 7:38am
Hello,
this is my first post in forexfactory I guess. I would like to thank all of you from this thread, especially eaglestar. I am in trading only for few months but it was really hard for me to find some kind of logic strategy or attitude to the market. I tried as everyone indicators, supply/demand, pure Price Action.Nothing make sence to me. I subscried to this thread few days ago and started studying it and materials from Tim Morge that you posted in main page. I donīt know if I am right but first pic of my wave analysis. Only time will show.

Thank you all. GREEN PIPS!!
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  • #423
  • Edited 7:54am Nov 25, 2015 7:43am | Edited 7:54am
Quoting eaglestar
{quote} When prices form extremes they form a pivot. A pivot is a turning point in the market. Pivots are where we draw support and resistance and pitchforks and ar sets from. When I said that price turns near pivot extremes I was talking about on the horizontal plane, but they also form price extremes on the diagonal plane and I have posted several charts some advanced that explain this. I only label them as advanced because most people trade on support resistance or supply demand, whereas we are also looking for time price extremes combining the...

Thank you for your explanation. It is becoming more clear. I have another question though. I saw Tim Morge's webinar for median lines, and at one point he shows 8 tick range bar charts. I have some trouble understanding what these are. Are ticks supposed to be number of contracts, or just number of pips when talking about forex? I googled for an explanation but couldn't find a satisfactory answer. Can you please explain this type of bars?

Also, does someone know of a good indicator to add for MT4 or Marketscope 2, so that I can have these bars?
  • #424
  • Nov 25, 2015 8:46am Nov 25, 2015 8:46am
Quoting Darksoul899
{quote} Thank you for your explanation. It is becoming more clear. I have another question though. I saw Tim Morge's webinar for median lines, and at one point he shows 8 tick range bar charts. I have some trouble understanding what these are. Are ticks supposed to be number of contracts, or just number of pips when talking about forex? I googled for an explanation but couldn't find a satisfactory answer. Can you please explain this type of bars? Also, does someone know of a good indicator to add for MT4 or Marketscope 2, so that I can have these...
Definition of Tick from http://www.investopedia.com/terms/t/tick.asp
The minimum upward or downward movement in the price of a security. The term "tick" also refers to the change in the price of a security from trade to trade. Since 2001, with the advent of decimalization, the minimum tick size for stocks trading above $1 is 1 cent.

So it is not time based at all, rather tick based chart. Tick charts take the time element out of drawing forks and ar sets because some markets have periods where there is no, or very little movement. I will try to find an article for you.

I am glad you are learning and starting to see market structure
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #425
  • Nov 25, 2015 10:58am Nov 25, 2015 10:58am
Quoting eaglestar
{quote} Definition of Tick from http://www.investopedia.com/terms/t/tick.asp The minimum upward or downward movement in the price of a security. The term "tick" also refers to the change in the price of a security from trade to trade. Since 2001, with the advent of decimalization, the minimum tick size for stocks trading above $1 is 1 cent. So it is not time based at all, rather tick based chart. Tick charts take the time element out of drawing forks and ar sets because some...
For stocks a tick is 1 cent, ok. For foreign exchange, is it correct to assume that a tick is whenever price changes, meaning (I think) a pippette?

Reading some online definitions it seems this is wrong. A tick in forex, if what I read is correct, is the smallest unit of time between two trades.
  • #426
  • Nov 25, 2015 7:48pm Nov 25, 2015 7:48pm
Quoting Darksoul899
{quote} For stocks a tick is 1 cent, ok. For foreign exchange, is it correct to assume that a tick is whenever price changes, meaning (I think) a pippette? Reading some online definitions it seems this is wrong. A tick in forex, if what I read is correct, is the smallest unit of time between two trades.
​In FOREX there is no tick. Only pips. Ticks refer to the smallest unit of change in price of the security such as a stock or futures contract. A pip is the smallest unit of change of price in currency. You can trade currency futures which do trade in ticks but then you should understand tick value. Futures contracts have much higher tick value. For example one tick in one contract of the euro is $12.50. In the pound it's $6.25.
  • #427
  • Nov 25, 2015 9:33pm Nov 25, 2015 9:33pm
Quoting Winston Reed
{quote} ​In FOREX there is no tick. Only pips. Ticks refer to the smallest unit of change in price of the security such as a stock or futures contract. A pip is the smallest unit of change of price in currency. You can trade currency futures which do trade in ticks but then you should understand tick value. Futures contracts have much higher tick value. For example one tick in one contract of the euro is $12.50. In the pound it's $6.25.
I understand. In the context of currency pairs then, do you think it's helpful to be looking at range bar charts or tick (pip) range bar charts?
  • #428
  • Nov 26, 2015 9:18am Nov 26, 2015 9:18am
Quoting Darksoul899
{quote} I understand. In the context of currency pairs then, do you think it's helpful to be looking at range bar charts or tick (pip) range bar charts?
​I think it makes no difference. Understanding price movement is the holy grail. Forking provides a framework to assist us in understanding price. Candles, bars, renko, Heiken Ashi etc etc will do nothing to help understand price.
Happy Thanksgiving everyone.
  • #429
  • Nov 26, 2015 10:13am Nov 26, 2015 10:13am
Quoting Darksoul899
{quote} I understand. In the context of currency pairs then, do you think it's helpful to be looking at range bar charts or tick (pip) range bar charts?
I think it might be of some use if you want to trade short time frames - on a chart of 5 minute bars you get long periods (overnight) when price does very little but it still prints lots of bars - tick charts eliminate this and so can make structure easier to see. There is a tick chart indicator for MT4 but you have to leave you're computer on all the time for it to gather data and it's accuracy depends very much on the accuracy of the data feed you have.
  • #430
  • Nov 26, 2015 8:50pm Nov 26, 2015 8:50pm
Quoting Darksoul899
{quote} For stocks a tick is 1 cent, ok. For foreign exchange, is it correct to assume that a tick is whenever price changes, meaning (I think) a pippette? Reading some online definitions it seems this is wrong. A tick in forex, if what I read is correct, is the smallest unit of time between two trades.
From forexdictionary
Definition - What does Tick mean?
A tick is the smallest unit of time between two currency trades. Ticks are not a consistent unit of time. For high-volume currency pairs, there can be many ticks a second. For more exotic, low-volume pairs, a single tick may last for minutes or even hours.
ForexDictionary explains Tick
A tick is frequently confused with a pip because, in non-forex markets, a tick has the same meaning as a pip. In forex, however, a tick is just the time that elapses between trades. Because prices don’t move one pip at a time, a tick can be worth several pips. That is, the price can fluctuate by more than a pip between each trade.

As mentioned above, ticks are relative to the currency pair and the volume of trading it sees. There is no consistent measure of a tick that can be applied across the forex market, whereas a pip is always 1/100th of 1%.

Also Forexfactory
What is a tick?
http://www.forexfactory.com/showthread.php?p=7827174
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #431
  • Nov 26, 2015 8:52pm Nov 26, 2015 8:52pm
Quoting Darksoul899
{quote} I understand. In the context of currency pairs then, do you think it's helpful to be looking at range bar charts or tick (pip) range bar charts?
Tick Charts... most often used tick charts that I have seen from Tim are 777 and 1444 and 888 and variations of these. Sometimes these numbers come from Number of ticks in a time based chart per bar to find a good tick size to chart.
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #432
  • Nov 26, 2015 8:57pm Nov 26, 2015 8:57pm
Quoting livindaylite
Maybe, its the Monthly Pitchfork that's 'active' on GbpUsd? Is there a top-down approach to this or the idea that a Pitchfork on a particular tf is ''in charge'' so to speak? {image}
The higher timeframe pitchforks are more easy to "see" because the pivots are more obvious. Tim talks about this many times. It may be easier to start with daily weekly monthly forks at first to practice drawing then move down to 4h 1h 15/20min. When I started drawing, I would draw on 4h charts. I just drew lines and lines on 4h charts until i began to see frequency. :nerd:
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #433
  • Nov 26, 2015 9:02pm Nov 26, 2015 9:02pm
Quoting vladutz112
{quote} hy i was just using simple trendlines for my trading, but i have a feeling u call these action reaction lines? {image}
Yes you are onto something. Go over the Action Reaction Course mentioned in the first post. Come back and post your findings and chart work so others can follow along. Don't get confused on "Horn of Plenty" as it was used to compete with gann fan I believe and seldom used.
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #434
  • Nov 26, 2015 9:05pm Nov 26, 2015 9:05pm
Quoting Mhons
Hello, this is my first post in forexfactory I guess. I would like to thank all of you from this thread, especially eaglestar. I am in trading only for few months but it was really hard for me to find some kind of logic strategy or attitude to the market. I tried as everyone indicators, supply/demand, pure Price Action.Nothing make sence to me. I subscried to this thread few days ago and started studying it and materials from Tim Morge that you posted in main page. I dont know if I am right but first pic of my wave analysis. Only time will show....
Thank you for your humble post and testimonial. I hope that by providing what I have learned and observed here will help others to make and collect pips and keep them. Please post your results in the coming weeks. I notice already that your lines are very good. You are a natural already. Take care.
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #435
  • Edited 9:28pm Nov 26, 2015 9:16pm | Edited 9:28pm
Something to observe and ponder

Mountains and Valleys. Tim talks about often starting out teaching traders using mountains and valleys.

The beauty is in the simplicity.
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #436
  • Nov 26, 2015 9:27pm Nov 26, 2015 9:27pm
Euro Weekly
and couple hourly
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #437
  • Nov 26, 2015 10:51pm Nov 26, 2015 10:51pm
mainly unsquared candles there....cool thread here to plow deep....I noticed first day out of the blocks that certain times reverse the P A.....the banks use three pushes mainly if we can spot that and cross it with volatility hours...like London at the 30 minute marks during the first 3 hours.
  • #438
  • Nov 27, 2015 4:03am Nov 27, 2015 4:03am
EURUSD 15minute chart - AR lines drawn off U formation. I didn't take the trade because it's Friday.
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  • #439
  • Nov 27, 2015 4:54am Nov 27, 2015 4:54am
Quoting eaglestar
{quote} The higher timeframe pitchforks are more easy to "see" because the pivots are more obvious. Tim talks about this many times. It may be easier to start with daily weekly monthly forks at first to practice drawing then move down to 4h 1h 15/20min. When I started drawing, I would draw on 4h charts. I just drew lines and lines on 4h charts until i began to see frequency. :nerd:
Hi Eaglestar

As with everything HTF is easier and lining things up in the right (top-down) order is what I try to do anyway to make sure I'm in alignment with the bigger picture.

Been drawing plenty of forks but not getting any sense of pattern that one might rely on. Sometimes, ,price seems to respect a line, whether median, or parallel other times it doesn't, so one draws another one and its the same, maybe it does, maybe it doesn't. How then is it predictive? Sometimes, I can shape-fit a fork after the fact but I wouldn't have known to bank on it in real time.

Maybe, you can speak to that and ground this stuff into practical application.
Also, could you say something about 'frequency' ?

I finally managed to watch one of Tim's webinars. At first I thought the links weren't working, but tried on another machine and realized the issue was Linux here. So, will work my way through a few of those and see whether I can learn from the maestro as well. :nerd:

THX
  • #440
  • Nov 27, 2015 5:23am Nov 27, 2015 5:23am
Drawing the right one's is one thing
Trading them is yet another.

How would you approach this as an example?

THX
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