price action trading

[saakk]

Hey Saakk,
Suppose we have a high volume day (600 contracts) and the price bar is an up price bar with a range of suppose 50 points, next day we have a down price bar with price range 100 points but volume 33% less (400 contracts traded) than last bar. What this things says w.r.t. price action

Yup post a chart, Mr. karnani is right, without chart it is not possible. I will always go with price action, its the ultimate indicator, I use to follow volume but it just added more confusion, now the chart is completely NAKED.... No indicators, no different TF'S nothing, just pure price action on single TF say 5min, 15min, 30min....... etc...

 

[avny]

Yup post a chart, Mr. karnani is right, without chart it is not possible. I will always go with price action, its the ultimate indicator,
:thumb::thumb::thumb:

I use to follow volume but it just added more confusion,

a very good book on vol analysis is "Trading in the shadows of smart money"

now the chart is completely NAKED.... No indicators, no different TF'S nothing, just pure price action on single TF say 5min, 15min, 30min....... etc...

.............................

 

[Vertigo_1985]

Hey Saakk,
Suppose we have a high volume day (600 contracts) and the price bar is an up price bar with a range of suppose 50 points, next day we have a down price bar with price range 100 points but volume 33% less (400 contracts traded) than last bar. What this things says w.r.t. price action

An up high volume day to me indicates a lot of struggle between buyers and sellers with buyers winning. Now if the conviction of buyers is strong enough then if price reaches the lower prices again next day then they should be there to buy it again. But in the case given by you next day is a down bar with double range( i am assuming that it's closing below up bar), for me that means there were not enough buyers to support the price and most of the buying was exhausted on first day. As the earlier longs now look to exit but don't get any buyers they panic and hence such a big down move.

Now what that means for future price action ? few longs on first day will be trapped and looking to exit on any up move so most likely any up move will be resisted and you can look to take shorts.

Above analysis is only for the information provided by you( which is incomplete as mr kulkarni has rightly said). Bigger picture is always more important and any trades should be taken taking it into account.

 

[Vertigo_1985]

Yup post a chart, Mr. karnani is right, without chart it is not possible. I will always go with price action, its the ultimate indicator, I use to follow volume but it just added more confusion, now the chart is completely NAKED.... No indicators, no different TF'S nothing, just pure price action on single TF say 5min, 15min, 30min....... etc...

i too tried to watch volume but it wasn't adding much to realtime trading, so now working on improving reading price action and execution first then maybe when the time is right will try volume again.

 

[saakk]

i too tried to watch volume but it wasn't adding much to realtime trading, so now working on improving reading price action and execution first then maybe when the time is right will try volume again.

Once you can figure out the Price action, you wont need any thing else. Most of my theories and understanding is influenced by Al brooks, I have found LOGIC in what he says, If you divide market just in DEMAND and SUPPLY/ BUYERS and SELLERS (no fundamentals, no news nothing, pure price) for trading you will understand why price did what it did in congestion, pullback, breakouts, trust me after sometime just by looking at candles along wit its CONTEXT you can figure out how market is getting top heavy and about to sell off, weak buyers, when price is bottoming out, weak sellers every thing is on the chart. Only requisite is do not front run the market, expect but also know market can do exactly opposite and if requires you can take opposite side of your exp. I see market as DEBATE between bulls and bears and all the news item as TOPICS, you don't need to know the topic all you need is to figure out who is winning and join them. How many times it has happen when some bullish news about a stock has come out and it tanked. SO its better to analyze the price then any thing else and waste precious MENTAL ENERGY.

Trade well.....

 

[Vertigo_1985]

Once you can figure out the Price action, you wont need any thing else. Most of my theories and understanding is influenced by Al brooks, I have found LOGIC in what he says, If you divide market just in DEMAND and SUPPLY/ BUYERS and SELLERS (no fundamentals, no news nothing, pure price) for trading you will understand why price did what it did in congestion, pullback, breakouts, trust me after sometime just by looking at candles along wit its CONTEXT you can figure out how market is getting top heavy and about to sell off, weak buyers, when price is bottoming out, weak sellers every thing is on the chart. Only requisite is do not front run the market, expect but also know market can do exactly opposite and if requires you can take opposite side of your exp. I see market as DEBATE between bulls and bears and all the news item as TOPICS, you don't need to know the topic all you need is to figure out who is winning and join them. How many times it has happen when some bullish news about a stock has come out and it tanked. SO its better to analyze the price then any thing else and waste precious MENTAL ENERGY.

Trade well.....

yeah, seeing it as supply/demand or buying/selling forces really makes it simple.
I have tried reading Al Brooks 2 times and have not been able to move beyond few pages, the information may be useful but i find it difficult to read and implement. For me Lance Beggs material has been the key.. really simple, structured and basic material.
You can do well just trading price action without reading volume or some other thing. But It would only add if you know how to read volume too. You would like to get every little edge you can. As you said question is about utilizing your mental energy, right now trying to read volume is not the best thing to do, that's why maybe later.

Regards

 

[saakk]

yeah, seeing it as supply/demand or buying/selling forces really makes it simple.
I have tried reading Al Brooks 2 times and have not been able to move beyond few pages, the information may be useful but i find it difficult to read and implement. For me Lance Beggs material has been the key.. really simple, structured and basic material.
You can do well just trading price action without reading volume or some other thing. But It would only add if you know how to read volume too. You would like to get every little edge you can. As you said question is about utilizing your mental energy, right now trying to read volume is not the best thing to do, that's why maybe later.

Regards

Put up any of your last trade chart, Mark the entry and exit wit reason, any one trade. If you want to, would like to study it.... :thumb:

 

[Vertigo_1985]

Put up any of your last trade chart, Mark the entry and exit wit reason, any one trade. If you want to, would like to study it.... :thumb:

took only 3 trades on friday, one long wipro @ 930 hrs exited at breakeven, long coal @ 1000 hr exited at profit at various prices , last trade was in axis putting its chart...

https://imageshack.com/scaled/large/854/niy2.png

 

[toocool]

If you can figure out what CONTEXT market is trading in you can enter any where and come out PROFITABLE. Trader don't need any signal bar's, all required is understanding of price action in that particular context, In-fact if he understand it well he can buy as low as possible and sell as high as possible. One of the TJ member uploaded some video about "FRACTALS", though i couldn't make out any thing about fractals because it included different subjects also. I did some research on fractals and suddenly it became crystal clear why PRICE ACTION works on every time frame, Fractals is "self similarity", just like NATURE; Market keeps on doing same thing over and over in every time frame, if we remove time axis there is no way to tell difference between 2 different time frames. Basically what works on 5 min will work on weekly.

 

[arcus]

Interesting similarities between those two periods.