Trading with Price Action

[pricetrader99 10]

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 10]

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 10]

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 10]

You might want to review this thread http://www.traderslaboratory.com/forums/f208/reading-charts-real-time-6151.html there are a couple of other good (if somewhat older) price action orientated threads here too.

[pricetrader99 10]

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.

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

[wjrusnak 10]

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 10]

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 10]

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.

[pricetrader99 10]

That is a daily chart of aud/usd, sorry about that. Yea, I know there are other people teaching price action. I just like how Nial does it though. He makes it seem really simple and doesn't sugar coat anything. I've known him for a while now as I am an active member in his online trading community and I can say that he is a great trader and the member's community on his website is a great tool.

 

Daily inside bar on eur/usd. Interesting set up.

[pricetrader99 10]

Here is the trade I posted up yesterday, everyone in the learn to trade the market member's community caught this before it happened. Price action truly is awesome.

 

[sevensa 10]

Here is the trade I posted up yesterday, everyone in the learn to trade the market member's community caught this before it happened. Price action truly is awesome.

 

 

In all fairness, yesterday you just said it is an interesting setup. I count numerous other inside bars also in the chart you have posted that didn't result in anything. It is easy after the fact to point out the breakout when you ignore the inside bars that didn't do anything and only focus on the one that preceded a breakout.

[brownsfan019 17]

In all fairness, yesterday you just said it is an interesting setup. I count numerous other inside bars also in the chart you have posted that didn't result in anything. It is easy after the fact to point out the breakout when you ignore the inside bars that didn't do anything and only focus on the one that preceded a breakout.

 

You beat me to it.

 

Saying that something is 'interesting' and then claiming a winning trade is exactly why this business is filled with unscrupulous vendors.

 

FYI - Oil is also very interesting along with Soybeans. I'll get back to you on what that means.

[Tams 20]

...you are giving price action a bad name

 

:-(

[thalestrader 14]

In all fairness, yesterday you just said it is an interesting setup. I count numerous other inside bars also in the chart you have posted that didn't result in anything. It is easy after the fact to point out the breakout when you ignore the inside bars that didn't do anything and only focus on the one that preceded a breakout.

 

 

This thread is obviously an attempt to drive traffic to whatever service(s) this Nial Fuller is offering.

 

Funny Observations on Price Action

 

Funny thing about inside bars: Change the time frame and they disappear.

 

Funny thing about pin bars: Change the time frame and they disappear.

 

Funny thing about price: Change the time frame, and it is still there. Change to a tick chart, still there. Change to a range chart, price is still there. Point and figure? you guessed it, still there.

 

Funny thing about vendors: Put them on ignore, and they disappear, only to reappear.

 

Buyer beware is all I have to say.

 

Best Wishes,

 

Thales

[Kiwi 16]

And Snake Oil salesmen have been around for a while.

 

But, here's a test, has anyone here got moderator privileges ... Nial is from Australia ... is pricetrader99 from Atlanta or somewhere closer to me?

 

He might be; Nial's stuff does have some appeal but it would be interesting to know.

[DbPhoenix 42]

Whether or not the OP is a shill is not necessarily the point. This stuff comes up regularly, and those who are ready to whip out their credit cards ought to review the following post:

 

After more than 5 years full time trading, and about 100 trade rooms later I have a few thoughts about how to save yourself a bundle of headaches and heartaches, and maybe a few buck as you search for a trade room.

 

First question is why do you need a trade room? Simple answer is that in the beginning it can help you get through some of the learning curve, and you have a place for some some sympathetic response and support for your trading woes. Complicated answer is you really need guidance but cannot afford a 1 on 1 mentorship.

 

A good trade room should help you make money while you learn. Unfortunately, with 100's of methods and as many trade rooms out there, how can you wade through the junk and concentrate on the better one's?

I have a few criteria that I think are an absolute must for a real trade room where your chances of succeeding and MAKING MONEY WHILE LEARNING are high.

 

Number one - You must be able to see the moderating traders charts in real time [bold mine].

 

Number two - You must be able to see the trades entered in real time either through the moderators order dom, or chart trader, or some method where it is apparent that the trade was entered, filled, and managed.

 

Number three - You must be able to follow the trades, or at least most of them. This issues gets a bit difficult in a fast market and may need some adjusting.

 

To my mind there are three basic types of trading rooms. One is where it's just pure trading, minimal instruction. The other is where the education has more emphasis, and trading takes a back seat...hence few trades. The third is a hybrid; a steady stream of trading towards a set room goal, some Q&A once the daily goal is met, and a scheduled series of ongoing educational sessions in addition to the room's daily trading. So, first you need to decide which is right for you.

 

Here's a tip. If you are considering a trading education in a particular trading method because you have none of your own, then look for the education emphasis. Otherwise, if you have a few good setups you know, and have some of your trading education already underway, then look for a trading room that will add to your knowledge, and help you make money as you learn their methods and tools. If, however, you have traded a bit

and have some tools and know some setups and yet nothing is working or going well for you, then look to the hybrid.

 

Regardless, remember the #1, #2 and #3 rule. DO NOT SETTLE FOR ANYTHING LESS. If a person hangs out their shingle and asks for your money in return for a service, then you better make sure that service is to your liking. If you are unable to see the trade moderators charts and his trade entries then pass that place up. It may be a good place, it may not.

But without the visual verifiable evidence you will find yourself not only having to watch your own chart, but also having to compile in your head what is happening, and keep that picture going along with all the other pressures of trading. I do not care what excuse is given...there is no excuse for not showing real time moderating trades taken in real time. Technology is not an issue, money cannot possibly be the issue, so it must be something else? Let's see...fear, exposure, stop fluffing, doubling up or bad trading habits or what? You tell me.

 

So, there is the absolute newbie (and it's going to be painful) who really needs a lot of luck to avoid the garbage rooms and there is the trader who is just looking to improve and there is the trader who really needs a better set of tools and methods to get him out of his funk.

 

So if you have found a room then the best way to research the room is to spend a few weeks just listening and watching. We are conditioned for immediate response syndrome, instant gratification syndrome and these are detremental to your trading health. We can probably all agree on that. If you do take the time to watch and listen, then keep a notebook and write down every trade call, the time and the particulars...targets hit, stops etc. and review it after market while looking at your own chart. Don't even look at your own chart while doing the assessment. Concentrate on what's going on in the room because if you decide on that room you are going to have to do the next very important thing to get the most out of the room. That is to trust the trading moderator and his trade calls. Why? Because you want to be able to make money while you learn. So your next task is to see if the room makes sense to you. Can you follow the logic of the trade moderator. If he is a really good trader, he may be a lousy moderator and vis versa. So you need to know that before you join. Look for verifiable results. Verifiable results are the trade records 1st hand...not some spreadsheet made up afterwards, or some list of trades posted in a chat window (even if in real time). In Ninja it's pretty easy. Look for the trade list records unadulterated right out of Ninja. Look for the summery records. I have heard a lot of traders complain that sim doesn't count. Well, I think that is wrong thinking. What you need to see is the trade time of entry, the target completion and the stop. Add a tick of slippage in one direction, if you like, to the trade and see what it looks like. Often, a moderator will move to sim if he has hit his daily goal. The better moderators are not at all shy about letting you know they have moved to sim. I think it very unreasonable of traders who insist that a moderator continue to endlessly trade throughout the day without some kind of stopping criteria. The concepts of over trading, pointless trading, mental fatigue, and plain stupidity come to mind if anyone thinks that trading without some kind of daily goal or quota is going to make you a better trader. On the contrary. So why should a moderator who trades his own money be forced to practice bad trading habits just because you as a member may have strolled into the trade room at 10:56 a.m. and want a winning trade. Well, guess what. By 10:56 a.m. most good traders are done for the day! So, once the daily goal is hit and if the moderator is any good, then you should not have any problems with his moving to sim. What's important is does he continue to call winning trades? Do the tools continue to give high probability setups? Can you see his trades?

 

So, now you have a room you think is going to work for you. You took the trial, you signed up for 1 month. BTW, Do not accept a room where you are required to sign up for a longer specified term...this is bs. If the room is a good room then there should exist the confidence that you will be so pleased and satisfied that you will return of your own desire. Now, remember the part about trusting the moderators trading? This is where it is important that you accept that fact and live with it. You are not going to catch every trade call...no matter what room you are in. Its just the way it is. Hesitation, you coughed just as the trade was called, a bug distracted you...whatever...its going to happen that you will miss a couple. So, the bottom line is that to get the most out of any trade room AFTER you have done your homework and decided, is to take every room trade period.

 

You homework should already have told you the performance expectation, the style of the rooms moderating trader, the basic methodology and trade setup rules, etc. Your job now is to learn the method and the setups in great detail, practice them under guidance, and make money while you learn.

 

I have been in some pretty crappy rooms (now I know they were crappy) and some pretty decent rooms (of course these are the ones I abandoned because i did not have my own act together). Currently I do not need a

trade room. If you are at that point then congratulations! If not, then even if you join any trade room, remember to look forward to the day when you can graduate and trade independently, consistently successfully, and live off the profits of your hard earned accomplishment.

 

A follow-on post may be found here.

[Tams 20]

Q: how did you know he's a scammer?

A: he said forex...

 

LOL

[wjrusnak 10]

This thread is obviously an attempt to drive traffic to whatever service(s) this Nial Fuller is offering.

 

I sort of leaned to that conclusion as well after he thanked me for my advice then proceeded to ask if I checked out Nial's videos. I gave him the benefit of the doubt, though, thinking "he must really be excited about this new guru he's come across." Silly me for believing in people

 

Funny Observations on Price Action

 

Funny thing about inside bars: Change the time frame and they disappear.

 

Funny thing about pin bars: Change the time frame and they disappear.

 

Funny thing about price: Change the time frame, and it is still there. Change to a tick chart, still there. Change to a range chart, price is still there. Point and figure? you guessed it, still there.

 

Funny thing about vendors: Put them on ignore, and they disappear, only to reappear.

 

Well put!

[thalestrader 14]

Here is the trade I posted up yesterday, everyone in the learn to trade the market member's community caught this before it happened. Price action truly is awesome.

 

As has been pointed out, you posted what you referred to as an "interesting" set up, but you said nothing about a trade - no entry, no stops, no targets, no plan; nothing, that is, until after price had made a move and you then show up hours later and tell us how well your subscribers did.

 

As you can tell, there is no credibility to that sort of thing here.

 

Let me give you an example. You click the linked quote below and find a trade I posted last night in another thread here at TL.

 

Hi Folks,

 

Hundreds of ticks available if I'm right about this short opportunity on the GU.

 

Best Wishes,

 

Thales

 

I'll include the charts here. You can go and visit that thread to see that everything was posted in real time and before the entry was triggered. Anyone subscribed to my free thread here on this free forum would have received a free email notification instantly of this trade opportunity. On my chart, anyone of these subscribers to the free thread would have been able to see a chart with entry, stop, and targets printed on the chart.

 

Blue line is entry, red line is stop loss, green lines are profit targets.

 

That is how a trade is "caught before it happens."

 

Did I mention that here at TL, it is free to be a member of our community?

 

If you are going to shill for a paid service, and you are going to claim great calls, then you ought to have the b*lls to make the calls in a usable, understandable way before the trade triggers, not a day after you are supposedly sitting on your fattened wallet.

 

Best Wishes,

 

Thales

[littlefish 10]

The real brain basher is how herds pay hard earned money for lies and the truth stands on his own free for all to take hold of, prepaid in full at that.

 

The buzzards need something to eat. Imagine if they went hungry.

[BlowFish 10]

Maybe I am naive but I read it as someone who has 'discovered' price action and is excited by the discovery. Perhaps they are also (understandably) rather enamoured by the person that introduced them to the idea. Keep posting charts with your thoughts about them and people will not be harsh as long as you drop the references to this or that service.

 

There are a couple of posters here that are vendors but not sponsors. They are still valuable members of the community largely because they understand it is unacceptable to promote their products here. I have also seen a couple of posters 'chased off' without a fair shake too, that's always a shame.

[jeffgroove 10]

I have been reading a book called price action bar by bar, by al brooks. It seems pretty detailed, but like many reviewers on amazon mention, poorly edited.

[Gabe2004 10]

I have been reading a book called price action bar by bar, by al brooks. It seems pretty detailed, but like many reviewers on amazon mention, poorly edited.

 

There is a thread for that book.

 

http://www.traderslaboratory.com/forums/f104/futures-i-trade-show-brooks-book-6008.html

 

Gabe

[DugDug 10]

this says it all......

Nial Fuller's Price Action Course Review - Page 2 - InformedTrades

 

If a sell the market does that make me a vendor?

(which I am doing at the moment in the equities - sent this to friend yesterday morning) I had been waiting on this for a while and just got lucky in the timing - thankyou Dubai world.

 

But wait theres more.....

I'm excitied....

are you sick of paying good money after bad for products that just dont work.....:spam:

[BlowFish 10]

this says it all......

 

Actually with respect I don't think it does (and strictly speaking you may have broken forum rules posting the link ) there have been discussions here that discuss the policy as it pertains to this community. A search should find them. There are some subtleties discussed that that thread you link does not seem to mention.

 

Vendors (and there fans) are free to post on TL (the way I understand things) as long as they do not promote there services here. It's really kind of simple. If the OP wants to carry on posting about break outs, pin bars, and inside bars they should be encouraged providing they do not keep mentioning xy or z service.

 

Seems simple to me....the guy has now been told it is unacceptable to keep mentioning an external service (though a PM from a mod to make it 'official' may be in order). Let him/her post in peace and if it is not of interest don't read it. If you doubt the efficacy or would like to see more information or clarification then request that he provides it. If he mentions xy or z again a ban is probably in order. Simple really.

 

And of course there is always ET for people that get there jollys from out and out forum wars