Can someone define and explain "price action"?

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Patch
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Postby Patch » Tue Jul 21, 2009 3:34 pm

koolbreeze

the answer is COMPUTER

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Postby patriotstef » Tue Jul 21, 2009 4:32 pm

Price action, yes as you said, is the movement of price. My question is, so what? We can all see that price is moving constantly on the charts day after day, but I nonetheless hear everyone telling me, "Price action is the #1 indicator." ..... but so what, if you know what I mean?

What does this have to do with making money on FOREX? How does this tell me what I need to do to get ready to make profit when the price movement can fluctuate in ANY direction regardless of what fundamental or technical analysis states? 95% of us fail because we don't know where that price on any given chart is going to be at in 60 minutes from now. Case closed, end of argument. WE JUST DON'T KNOW.

I'm looking at a 1HR chart right now.... the candle is going up, then down then up.... so what? The next candle is doing the same thing.... so what? The next candle is going mostly down and slightly up... so what? The candle after that is going a little more down than the one before it... so what?

Get the picture? I'm lost here. I'm not interested in what's happening now... I'm interested in what's going to happen later on. I'm beginning to wonder if associational remote viewing is the only way to do this correctly.................. price action? I still don't get it.

Thanks, by the way, to all whom have contributed to answering my questions here at this forum :) Most appreciative I am.

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MightyOne
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Postby MightyOne » Tue Jul 21, 2009 6:49 pm

patriotstef wrote:Price action, yes as you said, is the movement of price. My question is, so what? We can all see that price is moving constantly on the charts day after day, but I nonetheless hear everyone telling me, "Price action is the #1 indicator." ..... but so what, if you know what I mean?

What does this have to do with making money on FOREX? How does this tell me what I need to do to get ready to make profit when the price movement can fluctuate in ANY direction regardless of what fundamental or technical analysis states? 95% of us fail because we don't know where that price on any given chart is going to be at in 60 minutes from now. Case closed, end of argument. WE JUST DON'T KNOW.

I'm looking at a 1HR chart right now.... the candle is going up, then down then up.... so what? The next candle is doing the same thing.... so what? The next candle is going mostly down and slightly up... so what? The candle after that is going a little more down than the one before it... so what?

Get the picture? I'm lost here. I'm not interested in what's happening now... I'm interested in what's going to happen later on. I'm beginning to wonder if associational remote viewing is the only way to do this correctly.................. price action? I still don't get it.

Thanks, by the way, to all whom have contributed to answering my questions here at this forum :) Most appreciative I am.


:shock: LOL!

Price action is the tool by which we analyze the psychology of the other traders.

Price cannot move in any direction :roll: it can only move in a direction where an equal amount of money can be lost.

Price moves to eliminate bias

Price moves to bring all hopes and dreams to neutrality

Price there for moves in such a way so as to deceive

There is always a path leading back to the truth if you will but look for it

In finding the truth you will know profit.

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Postby MightyOne » Tue Jul 21, 2009 6:59 pm

If the trend lines represent profit then who is left holding profit?

Do you really believe that price action cannot tell you anything?

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Postby patriotstef » Tue Jul 21, 2009 7:12 pm

I see you're using an indicator here. How would one know, after looking at this chart, that price would have moved up after the 32nd candle? The 16th candle also closed above that 132.412 line... and then it came back down. Why do we ignore that?

What even is this indicator? How did it know price would stop around 134.464? Did it repaint? Is it Fibo or S/R? What about other horizontal lines that indicated resistance - that managed to be broken in this chart? How would we have known not to have exited at those other resistance lines instead of 134.464?

Thanks for your help, MightyOne.

EDIT:

Price cannot move in any direction it can only move in a direction where an equal amount of money can be lost.


Now this is starting to sound logical. How do we determine where and when that money can be lost, though? I was hedging the EURO back in Nov 2008, then I lost everything I made when the EURO gained almost 2000 points in the wrong direction for me, hence wiping out all of my profits and almost my whole account. How would I have known that price could have possibly been that unbalanced to the point where it gained 2000 points in only two weeks? I know the fed changed interest rates, but was that all I needed to have known?

Thanks

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Postby MightyOne » Wed Jul 22, 2009 4:17 am

patriotstef wrote:I see you're using an indicator here. How would one know, after looking at this chart, that price would have moved up after the 32nd candle? The 16th candle also closed above that 132.412 line... and then it came back down. Why do we ignore that?

What even is this indicator? How did it know price would stop around 134.464? Did it repaint? Is it Fibo or S/R? What about other horizontal lines that indicated resistance - that managed to be broken in this chart? How would we have known not to have exited at those other resistance lines instead of 134.464?

Thanks for your help, MightyOne.

EDIT:

Price cannot move in any direction it can only move in a direction where an equal amount of money can be lost.


Now this is starting to sound logical. How do we determine where and when that money can be lost, though? I was hedging the EURO back in Nov 2008, then I lost everything I made when the EURO gained almost 2000 points in the wrong direction for me, hence wiping out all of my profits and almost my whole account. How would I have known that price could have possibly been that unbalanced to the point where it gained 2000 points in only two weeks? I know the fed changed interest rates, but was that all I needed to have known?

Thanks


The "indicator" is simply a fibo tool set to 1 with %$ in the description so that the price level is shown.

[s]The answers to your other questions are complicated and would likely have to be shown to you in person.
[/s]

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Postby monolisa » Wed Jul 22, 2009 4:35 am

Well done MightyOne!! Spot on...

Lis

MightyOne wrote:
patriotstef wrote:Price action, yes as you said, is the movement of price. My question is, so what? We can all see that price is moving constantly on the charts day after day, but I nonetheless hear everyone telling me, "Price action is the #1 indicator." ..... but so what, if you know what I mean?

What does this have to do with making money on FOREX? How does this tell me what I need to do to get ready to make profit when the price movement can fluctuate in ANY direction regardless of what fundamental or technical analysis states? 95% of us fail because we don't know where that price on any given chart is going to be at in 60 minutes from now. Case closed, end of argument. WE JUST DON'T KNOW.

I'm looking at a 1HR chart right now.... the candle is going up, then down then up.... so what? The next candle is doing the same thing.... so what? The next candle is going mostly down and slightly up... so what? The candle after that is going a little more down than the one before it... so what?

Get the picture? I'm lost here. I'm not interested in what's happening now... I'm interested in what's going to happen later on. I'm beginning to wonder if associational remote viewing is the only way to do this correctly.................. price action? I still don't get it.

Thanks, by the way, to all whom have contributed to answering my questions here at this forum :) Most appreciative I am.


:shock: LOL!

Price action is the tool by which we analyze the psychology of the other traders.

Price cannot move in any direction :roll: it can only move in a direction where an equal amount of money can be lost.

Price moves to eliminate bias

Price moves to bring all hopes and dreams to neutrality

Price there for moves in such a way so as to deceive

There is always a path leading back to the truth if you will but look for it

In finding the truth you will know profit.
"Know your enemy and know yourself, find naught in fear for 100 battles. Know yourself but not your enemy, find level of loss and victory. Know neither your enemy or yourself, wallow in defeat every time." - Sun Tzu

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Postby dchappy » Wed Jul 22, 2009 11:29 am

Patriot , I feel you are over thinking this . To my eye price moves in defined limits . When it reaches a limit up it must reverse to a limit down .At least thats the basis of my trading .....Chappy
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patriotstef
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Postby patriotstef » Wed Jul 22, 2009 12:07 pm

Ok... "defined limits." I guess what I should ask is should we look at the news (fed interest rate cuts, etc.) to know when the NEW limits will be set?

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Postby monolisa » Wed Jul 22, 2009 12:15 pm

Limit, support, resistance, ceilling, floor, whatever way you say it, someone is buying and selling. Imbalance of the two forces makes price move up or down.

Lis
"Know your enemy and know yourself, find naught in fear for 100 battles. Know yourself but not your enemy, find level of loss and victory. Know neither your enemy or yourself, wallow in defeat every time." - Sun Tzu

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