Price Action with CndlstckChic

[kelliPA]

Disclaimer: anything you read below is my humble opinion, I do not claim to have been the original progenitor of any of these concepts, but just want to list the benefits of PA as I understand them (because I don't see a lot of PA specific material on this site and I do believe it is the best place to start as a trader)

Why you should be trading the daily chart

I once heard a trader refer to the daily chart as the Goldilocks of all charts (not too fast, not too slow - "it's just right"). But for the doubters out there, here are some of the many reasons why I agree with that statement. First of all, if you are a PA trader, you are very much involved with analyzing the candlesticks and what they are trying to tell you. The candlesticks of the smaller time frames hold less data about price movement and are more prone to whipping around with instability (noise). A signal you read on a one hour candlestick holds 1 hour worth of data and might precipitate a predictable move if you are lucky - but a signal from a daily candle holds 24 hours worth of data, and a signal from a daily candle is much more powerful and likely to "do as expected" than a one hour candle.

Another thing that is easily appreciated about the daily chart is that it is easier to follow, if there is a trend present, etc. Look at a 15 minute chart, and you might just see hills and valleys, hills and valleys over and over again with no clear direction in sight, but zoom out to the daily chart and you see the perspective of price taking a short pause in a strong downward trend. This should give you a clearer idea of what should be coming next...

When trading the daily chart, you really don't have to look at your trade more than once or twice a day. Which is a great time saver, trading doesn't have to consume your entire life. Some very successful traders just make their analysis, place their trade, and then leave it alone. But what I really appreciate about it is that when you aren't trading on the lower time frames, the overall number of trades you make should decrease dramatically (because daily trades move slower), and the amount of thought you put into each trade increases exponentially...this leads to decreased risk and increased success. Think about it this way, if you are making 30-50 trades a day on average, how much time are you really putting into each decision? And you are risking your (insert set amount of risk here) each trade, that's a lot of risk!

 

[the golden gun]

the overall number of trades you make should decrease dramatically (because daily trades move slower), and the amount of thought you put into each trade increases exponentially...this leads to decreased risk and increased success.

less trades?

more thinking?

 

[shopster]

gunner,

less yapping and more trading.

you don't wanna be like mikey ...........

s

 

[the golden gun]

gunner,

less yapping and more trading.

you don't wanna be like mikey ...........

s

k

 

[kelliPA]

I'm not an ICT follower and I honestly cannot contribute or gain much from the many posts on this forum that focus on that methodology, so I was hoping to create an open discussion type of thread about simple price action for traders who are interested in learning or sharing their knowledge about price action trading. I don't really get the point of these last three replies...are these supposed to be passive-aggressive underhanded insults toward my first post? If so, at least have the balls to disagree with something I say outright rather than posting pictures and innuendos - I don't even know what you are trying to imply. If I am misunderstanding your good intentions and being a b*#@h, my apologies. Now, moving on...

 

[kelliPA]

Be honest with yourself, do you seek excitement in your trading or is your true motivation to be profitable?

I was inspired by the example of a mentor of mine today, to talk about patience, whether that is the patience to wait for the right trading conditions, to wait for a signal, or wait for your trade to come to fruition. Patience can also be important in learning to break the cycle of trading like a gambler and instead learn the process of trading like an opportunist.

What is going to lead you to profitability over the long run? Consistent behavior in which you win more than you lose. Simple, right?

But it's not, because though most traders start out on the right path, trying to learn the ropes and make smart decisions - somewhere along the lines we get sucked into the excitement of it, we listen too much to our gut, and let our impulses, emotions, and addictive personalities drive us into careless trading habits. We think that we can get rich, the sky is the limit, and our sports cars and lovers will be lining the block (lol...dramatic much?)

I have been there - I did the whole watch the charts like a hawk for at least 8 if not 12 or 16 hours a day thing (addiction). It affected my job, my relationship. I did the whole, make 10 - 50 trades a day thing, where I barely thought about or analyzed each individual trade, but rode on the excitement of constant elation or despair (mostly despair) - depending on which direction my trades were going. I did the whole, can't really sleep, because I have to keep checking the markets numerous times per night thing. It's crazy! This is why they say 95% of traders fail, it's why I tanked my first live account, and it's why I took a year off of trading! And many traders follow the same exact path. It's human nature, we are weak...

But I had a love for trading. So, I came back a couple years ago after my time off for recooperating, and I came back with a whole different perspective. Strangely, I now have all the patience in the world and I follow the simple rules I learned in the beginning (and should have been following all along!): look for a trend, don't trade in sloppy conditions, don't trade in lower time frames, always get in on a retracement, and wait for a signal (okay, so I don't wait for a signal 100% of the time - but I am trying to improve on that behavior). I always use a stoploss, and I don't use indicators. I like to think of price action as the bullshit free zone of trading, where you actually read charts and know what you are doing.

 

[Peterma]

Hi Kelli,
In answer to your question, yes and yes.

In a sense GG is right about clowns, they usually fit into a box of big feet, funny clothes etc., we retail fit into a similar box.

Always a SL, keep it close, always think about R:R, keep that in your favour, search for a trend, and so on.

Nothing wrong with all that, but maybe step back, why not short term trading, why figure human weakness, retail can mean strength, a simple difference, we can exercise discretion - if you are an inst trader, try telling your line boss you are flat because the market is sloppy!

Bottom line, turn everything you are thinking on it's head.

All the stuff you read, it all fits into a box, even GG figures he is outside, but he is just part of it, just like I am - take a deep breath and think outside the box

 

[shopster]

" I have been there - I did the whole watch the charts like a hawk for at least 8 if not 12 or 16 hours a day thing. "


k,

you don't have an edge.
just another retail drone stumbling around.
a nice lite snack.

stevo is a pro, ex floor specialist but i have an edge over his yankee ass.
he never was a spo pit animal at the merc.

Steven Primo Specialist

https://www.youtube.com/channel/UC28zA_tyJbRTrnQ-wQuXl6w

watch his vid stack on the tube. it works on all time frames.

he has 3.8 decades into the game.

he doesn't do " bullshit order blocks or dumbass demo trade " ever.
neither do i.

that crap is the ultimate clown show.
right, mikey........

s

 

[the golden gun]

for s & k:

and that was just in the last 2 weeks...

always good advice to yap less, but be assured i'm movin them contracts

 

[Peterma]

Ok Kelli, a little more yapping from moi.

So some of the box stuff - first up is my own pet hate - the infamous SL.

In the box and we absolutely need a SL, the crux of our trading hinges on somehow computing the equally infamous R:R , the tool needed for the maths is a TP and a SL and get some sort of ratio going.

Baloney - a SL, as per the box, usually represents a trader's fear, his lack of self confidence in his own work.

The greater the fear, the lesser the confidence, then the tighter the stop.

So, in the box, he has just increased the probability that the trade will be......a loser.

Outside the box, the trader has done his work, like GG he has earned his stripes in the university of hard knocks, he is confident in his own ability, he uses a SL like it should be used, to protect his profit, he focuses on nothing else, profit is his only aim, not ego, not size, not some weird ratio, not being right - one thing and one thing only - black ink.

He sees profit on the bottom right side of the computer, he watches that number increase, then decrease, he figures the market might be turning, he doesn't give a shit about what he might leave on the table or that he hasn't reached some kind of chart level for a TP , or that some sort of notional ratio is not in his favour.

He is a capitalist, he sees profit......black ink, cover, hit the button.

Next up, in the box is this thing called noise.

 

[Chrisrocs]

Baloney - a SL, as per the box, usually represents a trader's fear, his lack of self confidence in his own work.

The greater the fear, the lesser the confidence, then the tighter the stop.

https://www.youtube.com/watch?v=_B0CyOAO8y0

 

[the golden gun]

 

[Jeronimo]

yes, you need many stops very tru. thank you for reminder dear sir.

many thks

j

 

[Peterma]

Lol, GG has just given a great example of noise, you have to watch those guys closely, count the number of hops, how often do they hop on the left foot when the ball is on green, then check out the right foot, then try to figure a pattern ...... that's noise according to the box.

Outside the box, there is zero noise, just like GG's little guys, movement but no noise.

Noise cannot be traded, noise is random, the market is tradable, all market movement is tradable - no such thing as noise in the market.

Thks GG for the little guys, btw the pattern is in the ball bounce

 

[Peterma]

Chris, you are actually off track on the video, an important aspect of market work is always do you homework.

Most guys associate that piece with the clown show, but maybe good to check out the real story.

Anyways,

"The reason a lot of people do not recognize opportunity is because it usually goes around wearing overalls looking like hard work".

Not by a certain inventor as per Wileys or Harpers - always do the work.

 

[Peterma]

Kelli, btw not trying to pick holes, your post creates more thought than is usual of late so always good to think a little more, so many thanks.

For guys trying to learn it is helpful to always figure both sides of an 'argument', it helps them decide their own particular niche.

Next up is my own number two pet hate - long term vs short term, 15min vs daily, even hr1 vs weekly.... even daily vs monthly ... grrrrr

 

[Chrisrocs]

an important aspect of market work is always do you homework.

 

[Jeronimo]

yes we need much work many thks!

 

[kelliPA]

wow...okay. well, here are some trades, if anyone wants to talk price action, shoot...

 

[Golden Bull]

I have been there - I did the whole watch the charts like a hawk for at least 8 if not 12 or 16 hours a day thing (addiction). It affected my job, my relationship. I did the whole, make 10 - 50 trades a day thing, where I barely thought about or analyzed each individual trade, but rode on the excitement of constant elation or despair (mostly despair) - depending on which direction my trades were going. I did the whole, can't really sleep, because I have to keep checking the markets numerous times per night thing. It's crazy! This is why they say 95% of traders fail, it's why I tanked my first live account, and it's why I took a year off of trading! And many traders follow the same exact path. It's human nature, we are weak...

A great trader has a position on from bell to bell.

Charlie D

But what only one of the greatest traders ever lived knows, right..?
The only reason you tanked and you blew, it's cause you sucked and were on the opposite side. Same as the rest of the 95% who blew and quit. That's it. No more into that. Don't try to blame short time trading. There are peeps who trade frequently a lot,win, then turn of the screens and go live happily. Cause you can't(cause of stress or skills etcetc..), doesn't mean its not doable. Long term trading is exactly the same as short term price action, except spa isn't like watchin' paint dry.

...
you don't wanna be like mikey ...........
..

But hes laughing at the villa-villakula.. 8) So whos laughing now?!?
-P