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-   -   Price Action vs Technicals (http://earthfriendlytraders.com//showthread.php?t=13273)

agneswe4 01-08-2018

Price Action vs Technicals
 
Hello.

Met someone that supposedly makes great amounts of money largely trading by price action.

Anyway he was kind enough to advise me on his trades last week.

Penny / micro cap stocks that were in play.

The problem was, i was observing this and it made no sense.
He would often trade against the intra-day patterns that were forming.

e.g. A bullish ascending triangle broke down on increasing volume, at which point he bought a lot more.

Another e.g. In another example a stock that was doing *nothing* , no trend, no patterns, just random erratic movements, no consolidation. He bought in, and the next day it gapped up +10%.


(i) Where can i learn how to analyze price/action? Any good books?

(ii) Volume can easily be faked, especially if the trader or syndicate is more than 1 party. How can you find dependable patterns observing the buy ups / sell downs?

agrohimian 01-08-2018

Hello.

Met someone that supposedly makes great amounts of money largely trading by price action.

Anyway he was kind enough to advise me on his trades last week.

Penny / micro cap stocks that were in play.

The problem was, i was observing this and it made no sense.
He would often trade against the intra-day patterns that were forming.

e.g. A bullish ascending triangle broke down on increasing volume, at which point he bought a lot more.

Another e.g. In another example a stock that was doing *nothing* , no trend, no patterns, just random erratic movements, no consolidation. He bought in, and the next day it gapped up +10%.


(i) Where can i learn how to analyze price/action? Any good books?

(ii) Volume can easily be faked, especially if the trader or syndicate is more than 1 party. How can you find dependable patterns observing the buy ups / sell downs?

AgustinKasp 01-09-2018

I trade price action but with the computer analyzing it. I consider price action to be a technical indicator. I stay away from trading low volume instruments, I find that the price action is less likely to be a good predictor the lower the volume is. The ES is my instrument of choice.

Cheers

Ahjthonyclory 01-10-2018

interesting - I meet loads of vendors claiming this as well .....still waiting for the concrete and audited proof though http://static2.trade2win.com/boards/.../icon_wink.gif

AhmadZhang 01-12-2018

To know more about he price action strategy you may refer to the neil's website which throws light on price action strategy. It may be helpful for you.


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