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Thread: Price Action vs Technicals

  1. #1
    Arnolddeedy Guest

    Default Price Action vs Technicals


    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?

  2. #2
    Arthurkelty Guest


    I would think this was pure luck because to be sure you must also account for all failed calls.

    Some good article son how to analyze price action can be found in this blog. This site has info for beginners. I would stay away from vague calls with methodology that is not clear.

  3. Default

    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.

  4. Default

    interesting - I meet loads of vendors claiming this as well .....still waiting for the concrete and audited proof though

  5. #5
    Aureliosat Guest


    Just cuz it works for him doesn't mean it will for you.

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