Price action

[allinger]

In the words of the maker - let this be the thread of Price Chartists...

There'll be price only in this thread - i.e. no Bollinger Bands, no RSIs no nothings: price and volume kick a**...

/A

[srg100]

Price action is all there is...all the gazillion indicators are derived from price, time, and frequency of ticks. What else is there ? Although I refer to indicators, I mainly watch price action in reference to support, resistance, trend lines, and pivot points. I buy it as its moving up and then sell it while its still moving up. I do the reverse for shorts. Sounds simple...I win 50%....and lose 50%. There is nothing easy about trading FX....in fact it is the hardest thing I have ever done. Spent years learning and backtesting....there is no end to learning. Price action comes first...indicators follow.

[llh]

Hi Srg100:

One of three things happened regarding the post immediately above this one...

1. I completely misunderstood what you wrote.

2. Vital text was inadvertently omitted from the post.

3. You wrote what you meant, I do understand IT, but I now have no understanding whatsoever of your reason for trading.

The reason for saying what was said in number three above, is why would anyone want to trade if they're consistently successful 50% of the time? As best I can figure that would make a person's average loss and gain exactly zero.

If what is stated in your post is correctly received, there would be absolutely no reason to trade. Please understand that this reply wasn't written with the intentions of beating you down and I hope you don't take it as such.

Please post what you meant if it was something other than what it appears. Perhaps what you wrote is a fragment thought, which branched from another posting/conversation? I'm quite curious to hear "The Rest of the Story."

[topchess]

Perhaps, 50% of total opened positions are winners, and the remaining 50% are losers, given that take profit level is wider than stop loss level.

[rhodytrader]

The reason for saying what was said in number three above, is why would anyone want to trade if they're consistently successful 50% of the time? As best I can figure that would make a person's average loss and gain exactly zero.

You are mixing up win rate (frequency of winning trades) with the ratio of average winners to average losers. If your average gainer is bigger than your average loss, a 50% win rate will mean that you make money in the long run.

[srg100]

correct...my wins avg 20 pips or more and losses 10 pips or less

[llh]

Hi Gents:

Ahhhh, I see... it appears me thinks too simple at times. Thanks for the clarification