Price action basics part 4 - Page 69
Page 69 of 69 FirstFirst ... 19596566676869
Results 681 to 682 of 682

Thread: Price action basics part 4

  1. #1
    Educator
    Join Date
    Jun 2013
    Posts
    1,103
    Thumbs Up
    Received: 579
    Given: 189

    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.


    Attachment 1177

    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 ;)

    Attachment 1178

    Share your ideas below.

    Not allowed!
    Last edited by Value trader; 09-13-2013 at 03:38 PM.

  2. #681
    Trader
    Join Date
    Jan 2019
    Posts
    5
    Thumbs Up
    Received: 1
    Given: 1
    Quote Originally Posted by Value trader View Post
    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.


    Attachment 1177

    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 ;)

    Attachment 1178

    Share your ideas below.
    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 :)

    Not allowed!

  3. #682
    Trader
    Join Date
    Oct 2019
    Posts
    34
    Thumbs Up
    Received: 1
    Given: 11
    Hello brother known that working with the trend is the ideal way to trade and can choose indicators to help us determine the general direction of the currency price such as fibonacci corrective ratio is the best way to trade and get good results from trading we sell and buy in a very secure and profitable way the important thing is to master For a good indicator

    Not allowed!

Page 69 of 69 FirstFirst ... 19596566676869

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •