[stalor455]

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

[luke24.5]

Originally Posted by stalor455 »

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.

[mister ed]

Originally Posted by Soultrader »

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.

Off the top of my head I dont think I have ever read a better piece of advice on learning to trade - thanks James.

[stalor455]

Thanks for the help. What is a 233 tick chart & how do you set it? I use Esignal, but not familiar with a 233 tick ch I chart 15 min & use nyse & nasd $vold $add $trin $tick in that order, breadth is king,, add/dec queen. I haven't read a lot about those indicators on the board. My 2 cents is price will always follow the breadth $vold candles, those indicators have worked well for me. Great board guys thnx for the help and input..Steve

[TinGull]

Originally Posted by stalor455 »

Thanks for the help. What is a 233 tick chart & how do you set it? I use Esignal, but not familiar with a 233 tick ch I chart 15 min & use nyse & nasd $vold $add $trin $tick in that order, breadth is king,, add/dec queen. I haven't read a lot about those indicators on the board. My 2 cents is price will always follow the breadth $vold candles, those indicators have worked well for me. Great board guys thnx for the help and input..Steve

You don't happen to trade with thinkorswim do ya? A couple things you wrote there sound shadowtrader-like. I trade with ToS and listen to ST a lot.

[Trvlwanderer]

Trade with the trend once confirmed. Use support and resistance / pivots as guideLINES. Intraday chart patters are productive, but again only when confirmed. Price, volume, chart recognition for additional opportunities.

I learned long ago that calling tops and bottoms will lighten your account.

Trvl.

[stalor455]

No I don't trade with TOS, but I do listen from a link, I've followed Peter "ST" since 03 when he was a moderator in a trading room. Shadow trader rocks! He has helped my trading more than anyone or anything. Shadow Nation! Sorry to see Peter leave, but Brad is doing great job.