Price action basics part 4
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Thread: Price action basics part 4

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    Price action basics part 4

    Beginning of this thread is here


    Technical analysis tells us that "price reflects everything".

    Is it right or not?

    In previous post I've shown moving average indicator as an example of how one can use price-value approach in trading.

    But this is just example, in reality, simple MA can't show you where value is.

    Let's say, MA calculates 35 closing prices (35 parameter). Do you think that every price is equal here? Area located at higher prices is more significant for the market because it attracts more volumes (aggresiveness). So in fact weight of higher prices in calculation formula should be increased if we want to know where value is.


    robo1.jpg

    What am I trying to say?

    Price can't reflect everything because not every price level is equally important for the market.

    The missing piece is time and volume

    (we don't have volumes on Forex - tick volumes is not what we need, so we can make conclusions about volumes from price action - was it aggressive or not?)


    If you will refer to price as to advertising mechanism, it would be much easier to understand what's going on on the market.

    I will quote great trader and coach, Jim Dalton, that teaches his students in approach of auction market principles:

    Price advertises opportunity

    Time regulates this opportunity

    Volume measures success or failure of this opportunity



    Let's now get back to practical things.

    I will attach chart from EURUSD to this thread. How do you think - what leves are significant for the market here?
    I placed simple MA with 35 parameter here ;)

    levellllls.jpg

    Share your ideas below.

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    Last edited by Value trader; 09-13-2013 at 03:38 PM.

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    sir i am a beginner trader and have lost many times for trading with my various indicators .af far as i learn about my indicators i have applied but could not make any consistence profit.i have collected price action basic part 1 to 4.so i think if you continued your shearing in here we beginner trader would be benefited.

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    I have read your PRICE ACTION part 1 thread, part 2 thread, part 3 thread, and also this one which is part 4 thread of price action trading strategy. First of all i would like to thank you for your efforts sir.
    And secondly i would also like to tell you that i am also a price action trader too. Lets both contribute :)

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    Quote Originally Posted by taharoyal52 View Post
    I have read your PRICE ACTION part 1 thread, part 2 thread, part 3 thread, and also this one which is part 4 thread of price action trading strategy. First of all i would like to thank you for your efforts sir.
    And secondly i would also like to tell you that i am also a price action trader too. Lets both contribute :)
    Thanks for response.

    It would be interesting to hear from you about your trading and methods.

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    Quote Originally Posted by Value trader View Post
    Thanks for response.

    It would be interesting to hear from you about your trading and methods.
    I am already a part of this community and sharing my live trade which are purely of price action trade calls. I share my charts here with sharing my scenarios to what would might happen if this breaks and from where to buy/sell etc.
    Please do have a look
    My Daily Analysis - Price Action Strategy :)

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    Quote Originally Posted by taharoyal52 View Post
    I am already a part of this community and sharing my live trade which are purely of price action trade calls. I share my charts here with sharing my scenarios to what would might happen if this breaks and from where to buy/sell etc.
    Please do have a look
    My Daily Analysis - Price Action Strategy :)
    Yeah, really, I've seen this thread, but I forgot that it's yours :)

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    I am still confused in getting the gist of topic that you provide in the thread (part 4).
    It seems like you really have a vast knowledge of the price action. I thank you for that matter. I have never received this good knowledge than here. Only here.
    It's like a game of logic.

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    Quote Originally Posted by rinaji View Post
    I am still confused in getting the gist of topic that you provide in the thread (part 4).
    It seems like you really have a vast knowledge of the price action. I thank you for that matter. I have never received this good knowledge than here. Only here.
    It's like a game of logic.
    Thank for the feedback. Well, it can be complicated a bit. But you can also attend webinars - there we watch real trades, maybe it will be less confusing for you after that.

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    I am a beginner, I cannot say I will become the master within a day in forex trading. Through this thread I learned a lot which helps me to get basic idea on price action. The rest result can be possible to gain when I will go to implement it my trading. I find each and every thread of this forum very interesting and try to learn properly so that I can become a good forex trader.

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    price action is used usually mixed with moving average, but we often use strategies .. no no repaint indicator indicator repaint with price action,,, when the cut-off point passed candel we could do order, but we often have a lot of loss that it took additional indicator. we must be careful when making the order.

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