[pricetrader99]

Hi,
I would like start a thread about price action analysis. I have recently started trading forex strictly off of price action setups alone and I have found it much easier than using indicators or any other system. I am wondering how other people use price action to trade from or what degree of success they have had using this method to trade forex or other markets. Has anyone heard of a guy named Nial Fuller? He has a bunch of videos on youtube that I recently came across and they seem very helpful. He also has some good free videos and info on price action on his website. Anyways, I would like to hear what people think about price action and maybe post up some charts of specific price action setups I have learned. Thanks.

[wjrusnak]

I think you are on the right track to developing a good trading system. Most beginners aren't even thinking about price and what it's actually doing, as compared to lines crossing each other. My advice to you is to get a feel for support and resistance, especially in real-time (if you can). You'll see that traders repeatedly react to a specific area, which generally ends up in a reversal or a break. Volume can even help you recognize how significant a particular area is (if you trade something other than forex that is). Price action boils down to waves of buying and selling. Sometimes you'll notice patterns and tendencies in the mix and hopefully you can use some of these occurrences as signals.

Explore the site, especially some of the stickies and popular threads in each area of the forum. And if you didn't know already... this is going to be a lot of work. You'll spend hours trying to figure this game out Good luck.

[pricetrader99]

Thanks, wjrusnak
I have been studying price action alot recently and it's been making my trading go alot more smoothly. Before I was trying to figure out how every little indicator worked and what not. Which I have finally realized is a fruit-less effort. Have you seen any of Nial Fuller's videos on youtube? What is your opinion of his price action methods? He is one technique called the "fakey" I believe, it seems pretty interesting. Let me know if you can't find him on you tube and will send you a link. Take care -

[BlowFish]

You might want to review this thread http://www.traderslaboratory.com/for...time-6151.html there are a couple of other good (if somewhat older) price action orientated threads here too.

[pricetrader99]

Thanks Blowfish,
I sort of wanted to get my own thread devoted to price action though. I've been learning from Nial Fuller, and he has a unique take on price action. I highly recommend going and checking out some of his videos on youtube.

here is an inside bar trade I recently made on gbp/jpy.

[wjrusnak]

Originally Posted by pricetrader99 »

Thanks, wjrusnak
I have been studying price action alot recently and it's been making my trading go alot more smoothly. Before I was trying to figure out how every little indicator worked and what not. Which I have finally realized is a fruit-less effort. Have you seen any of Nial Fuller's videos on youtube? What is your opinion of his price action methods? He is one technique called the "fakey" I believe, it seems pretty interesting. Let me know if you can't find him on you tube and will send you a link. Take care -

Fuller has a working strategy. I especially like that he has his charts completely clean of indicators (with exception of that moving average). What I would do, if I were you, is learn as much as you can from this guy as you can, then explore other perspectives on price action (PA). Blowfish sent you a link to a thread where people are displaying all the reasons and signals for trades, which all look to be PA-based. Check it out and see what you can get from those guys. Explore the Wyckoff thread if you want a very sound basis for why PA occurs in the first place. Read up on Market Profile. Do all of this while documenting all your own trades, such as what you did above. Describe the exact the reason you took the trade or what you could have done better.

Now as an example of different perspectives, I would call your "inside bar" a hinge and I would have taken the same trade. Two different ideas leading to the same trade. Refer to my chart below to see what I'm talking about.

What you see here is a balance, or equilibrium, of buying and selling pressure. Eventually, though, the sellers find the initiative to move the price and they start to overwhelm the buyers with increasing orders at lower and lower prices (evident by the break in the upward trend line). Once sellers decide it's okay to sell at these lower prices (149 and below), buyers hold off until they get to the support line that you have drawn.

Ultimately, with price action, what you'll want to pay attention to are support/resistance lines, trend lines, higher highs/lows, lower highs/lows, and different time frames. You will notice most of these concepts in anything you read about price action.

Keep up the posting with your trade details and you should be able to funnel your way to a specific and profitable strategy that fits your personality.

[pricetrader99]

Thanks wjrusnak,
I really like Nial's approach because he has a knack for teaching and seems to really know what he is talking about. Did anyone catch the pin bar on aud/usd from friday?

[BlowFish]

Nials stuff seems refreshingly straight forward and as you say well presented. I am not sure it is that unique (not that that matters). There are very similar methods presented by James16 at another venue and TraderDante at yet another. Price action (manifesting as pin bars and inside bars) at longer term S/R is a pretty sound basis for a trade.

Anyway I certainly don't want to derail your thread, really nice clear charts keep them coming.

Edit: what size bars are they on the Aussie chart you posted? I could work it out but being lazy.