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Old 09-09-2006, 04:45 PM
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I can not give you an exact time it may take for you to learn the markets based on pure price action. I can give you an example from my own experience though.

I learned trading while working at my old job at the office. Because I was unable to install any trading platforms, I would simply visit sites like futuresource.com | Futures & Commodities Quotes, Charts, News & Analysis to get delayed quotes and a 15 minute delayed candlestick chart. Obviously these charts do not have advanced technical analysis so the only thing I was able to look at was a candlestick chart. Absolutely no volume or any other technical indicator.

The only way for me to update the charts and quotes was by refreshing my browser. So I would reload my browser every 15 minutes to obtain fresh information. This went on for approximately 4-5 months and in the meantime I began to try to predict price. Since it was a browser based chart, I could not see the actual price movement. All I could see was where price would be in the next 15 minutes.

This pain in the butt method actually helped me learn price action immensley. I began to write down trades or predicitons on where price would be in the next 15 minutes. I started to realize that prices will move from one level to the next once support/resistance is broken. So I began to look for key support and resistance levels using a 5 minute, 15 minute, and 60 minute chart.

I also noticed how overnight S/R levels acted as key pivots for the trading day. Eventually I worked on this skill set to study market profile and came up with my own trading style based on pivots and MP. I no longer use a 5 minute, 15 minute, and 60 minute chart.

I use a 233 TICK chart and a daily chart for most of my trading. I have also applied more advanced pivot point trading techniques into my arsenal. But initially, I was kind of forced to learn the markets just by observing price.

I am sure you have the luxury of real-time data. Start by taking all your indicators off. Apply a candlestick chart and a time of sales and just sit there and watch it all day.

Enough absorption by your mind and you should start to recognize patterns. Force your brain into autopilot. Trading should be as easy as driving a car. First year drivers are usually reckless. In Japan, cab drivers are the best drivers. Why? Experience in a dense city.

Commit at least 3 or more months understanding market action based on price. Trust me this will all pay out in the end. Good luck.

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