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Old 11-29-2007, 09:41 PM
luke24.5 luke24.5 is offline
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Re: S&P Trading Technique

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I would like to know how to learn to trade by price action, the best trader I've ever seen uses nothing but candle sticks, price & volume. I'm convinced it is the way the sucessful traders do, but not sure where to look for educational info or what I need to focus on or read. I've watched time/sales as suggested above, but...... Any suggestions on what to read, learn or focus on is appreciated..Thnx
What you're asking is how to learn to interpret Market Generated Data. You mentioned using candles, price and volume. That's three basic studies.

1. Candles: Study basic pattern formations. Check the book review forum at this site.

2.Price: Not all prices are equal. Study a volume @ price histogram. Mark the Highest volume (Mode) which defines perceived value. Define H vol and L vol points (Chartex.com is free). Then study action on a simulator.

3. Volume:Tom Williams Master the Markets is a good start, then study Market Profile which combines Price, Vol & Time.

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