Pure Price Action For Dummies

I don’t know if this was posted but is very interesting :8:

Once a upon a time…

Man was very inquisitive and very interested about predicting the weather. It was a very important issue in getting it right (mostly for agricultural reasons). Man used omens and divination to predict weather. Later on they found a more accurate way of predicting the season with the formations of the stars.

Fast forward to the year 2010 and man have come very far and developed new ways and technologies in predicting the weather. Even with our current technology, with the super computers we have, predicting the weather still isn’t 100% accurate. Hence, the saying; “Since when was the weatherman correct about the weather!”

Rewind a little, with the introduction of the computer. Man celebrated on how this technology would help in predicting the weather. The computer can calculate tedious data in hours instead of days. Man saw a great potential and went straight to work, developing the computer to help him in predicting the weather.

As with any endeavor, it was faced with setbacks and failures. You see, Man found out that the computer wasn’t as consistent as he hoped it would be. The results were slightly better, but nowhere close enough to acclaim that there was a consistent measurable result… or reliability.

So, they invited the great minds, experts in the field and anyone else who wanted stand up to the challenge. They invited people to write a code for the computer to predict the weather (of course the winner would receive a prize).

There were thousands of code that were written and developed for the computer, but it did not produced the significant results. There were codes that took into account hundreds of variables, some codes took advantage of major variables, the codes ranges from the simple code to the very complex code that seems out of this world. But the results… the results were below the median, meaning that the odds were the same as tossing a coin (heads or tails) in predicting the weather.

But there was one code which was the winner… It produced a more consistent result and it out-classed all the other codes in performance. The result of the code produced way above the median, giving good reliability, but… it wasn’t 100% correct. It was more of like 60%-70% correct, while the rest of the codes were producing only 10%-35%.

To the everyone’s surprise it wasn’t a complex code… It was a simple code, nothing more… Actually, the code contained only 1 line of coding:

[B]Code:
“Tomorrow’s weather is similar from Today’s weather.” [/B]

[B] If yesterday was a buy, then today is a buy.

If yesterday was a sell then today is a sell. [/B]

Benito great story, that is the beauty of the simplicity. Golden rule of any rule. What happened yesterday is most likely will happen similar today.

Salute to Nikita for sharing this Golden rule with us.

On a short break at the moment.

Need to get a few things in order and out of the way so my silence from babypips and all the threads that I normally hang out at.

Have to be totally zen and concentrate on hitting a few key targets. Its time to up the game and move on with the big boys.

Will be back shortly and hopefully plenty more thoughts, ideas and discoveries to share!

In the mean time do trade, and share your thoughts and ideas as usual.

I will be lurking and popping in and out as time permits.

Happy trading.

LOL!

Was having a chat with a relative of mine yesterday. ( Monday )

He looks up at the sky and says " Sheez I wonder if its going to rain today".

Yeap, it poured for 5 hours non stop. It rained today. It was raining yesterday, it has been raining non stop for the last three weeks!

Is it going to rain tomorrow?

LOL.

It has been a learning curve for me too fedegmail.

I never use to pay attention to the weekly or monthly.

I do now after I got a few really good positions by looking at the weekly candles.

I have not figured out a way to use the weekly in such a way where I can easily share the technique with others here. But these days Weekly is another that I keep an eye out for.

The underlying concept is the same, the entry consideration and methods might vary a little as time progresses.

The market, after all does not change but yet is different from day to day.

Awesome, just reached page number 100 and reading more. Just wish I would have known all this stuff half year ago. Well, PA, here we come!

So many thanks to Nikitafx! Your trading is just something I want to aim also! Great!

Well like the saying goes “better late then never”.

enjoy

No doupt, can’t wait to read 100 pages more this topic & study also Nial Fuller’s material.

You are on the right path man… You just hit the right places. Learn from these two guys. These two guys have the best trading system existed in the world IMO.

Good Luck

Hi Salimvp,
Could you please tell me who you mean these two guys?
Thanks a lot

Is it worth investing in Nial’s course? I have been debating.

Although i am not a member of either…i belive johnathon might be a BETTER CHOICE…
As for me i normally post at FF…hence my post status regards Babypips

LOOK up FOREX PRICE ACTION THREAD( Under FREE FOREX TRADING SYSTEMS ) on BabyPips… you will find more Info there

take care

baz

Nial Fuller and NikitaFX.

I can’t say it is worth to buy. Let me explain about him, his course and his forum. (please remember I’m not promoting him and his website)

He is a decent trader. (It was told by Bobmaninc :stuck_out_tongue: ) I don’t think so he is trading Forex. But he has more than 8000 members. Can you guess what he made from the forum? He charges less than $350 for accessing his forum and his advanced course for a life time. His trading ideas already available in internet free of cost. But he has some unique trading strategy that is fakey setups.

In his blog he is posting Forex articles every Friday. The value of the article is immense. It help everyone for sure. See, it’s free.

Every day he will post (Tuesday to Friday) analysis of one pair. It will help traders which direction you should trade. Again it’s free.

He published his own trading strategy in his blog, i.e fakey strategy and pinbar strategy etc… again you can read about this in his blog and watch his videos also… Yaa, free.

But what he is offering there?

He has a forum which includes threads of almost all pairs trading setups. Only trading setups, no chit chat. otherwise the moderators will delete the posts or they move to the relevant thread. But there are many other threads which are discussing other topics.

He explained about his strategies in a advanced level on his forum. More than what he published on his blog as free.

Everyday he will post daily commentary of five pairs. One pair will be from commodities that will be one of GOLD, SILVER or OIL. It’s enough to find a good trade per day.

He has two moderators to help traders. If you see any setup and post your chart with what you think, they will comment on your setup. There will be some traders against your trading idea they will comment on what they see there.

He will be there when you contact him. You can call him. He will reply your e-mails and answer your questions. If you want a mentor he is the right person. But for all this it cost you around $350.

So, the determination on Investing in Nial’s course is UPTO you. I thought You can get some confidence from his forum. Only 350 bucks he charging. You can go to your day job, vacation, partying while you trade using his system. Whenever you have time to trade, look on his daily commentary or trading setup thread.


I didn’t read Johnathons thread completely. After reading some pages I suspect they are same. Different name, Different website, different strategies but same trading system and they are both from Australia.

Both are using same type of charts. Pure naked vanilla charts. Same levels but different entry level names and different candle formation name.

Johnathon also charging $280 for a life time access to his forum.


So, what I said in reply to Sampo is this two guys system worked well. What I have observed from Nial Fuller and Nikitafx is there are similarities between these trading systems. But Nial’s system needs patience and wait for days to execute trades. A long term trade. But Nikita’s system teaches us to execute trades same day (as far as I learned from this system).

How they similar?

Both trading system based on Trends, Bias and Support and Resistance levels. If you see Nial’s daily commentary on his blog you can understand what I’m saying.

[B]SO HERE IS THE MY TWO CENT WORTH OPINION[/B]

Learn how to draw support and resistance lines on a Daily chart. Watch how this level respects. No need to stare at chart hours. Only after closing the New York Session, draw support and resistance level.

Nial’s daily commentary based on the support and resistance levels on the Daily chart. I think he posted article how to draw these lines on his blog.

Now take trades direction of the Bias. In daily chart a pair pull back from the support it will go the next resistance level. Until it hits the resistance line we should buy. But if yesterday a Buy then today a BUY. Buy after some retrace from the daily chart. Look 4H or 1h chart to enter trade. It’s good to draw a support line on 4H or 1H chart (I’m talking LONG trades with LONG Bias).

Take pips between 40-60 pips daily.

If price retrace too much pips (or if you have doubt that the pair will go down more) then you can enter break of yesterday high. Remember Price will go to the next resistance level most of the time in Longer time frame.

So draw support and resistance levels on a daily or weekly (weekly chart more reliable than daily) chart and see what happened in past and look for the future.

If you completely understand Nikita’s system then you have no need to go anywhere. Everything is here. BUT IT WILL BE A GREAT HELPFUL IF SHE MAKE AN E-BOOK. SHE ALREADY MENTIONED THAT SHE IS WORKING ON THIS. BUT HEY… SHE IS NOW WITH SOME BIG GUYS. I’M HOPING SHE WILL FINISH IT AND SHARE WITH US.

Good luck and wishing you all a Fantstic Pippastic Trading Life… :smiley:

So OP is going to make an e book? Wow.

Who is nial?

Hi to all
Discovered this thread last thursday and just completed reading all 208 pgs just now. It was alot to go through but well worth it. A really valuable contribution by Nikita, her lieutenant bobmaninc and others. - A Big Thank you. I am formulating a question but thought it best to complete the thread before posting. Thank you.

Hi Nikita
Is this thread over? Anyhow if you come back heres my question. I wonder if you could expand on the concept of retail/wholesale prices by way of a chart eg where the newbies would enter at retail and the experience trader and institutions might for wholesale because this seems to me to tie in with your lecture on psychology on how we are naturally programme to read charts patterns/prices after theyve moved instead of anticipating a move before it happens. Thanks.

This post cleary explain’s the answer for you question.

http://forums.babypips.com/newbie-island/39634-pure-price-action-dummies-85.html

Here I am, at the end of thread. Now question I didn’t find reply or actually didn’t even see whole question.

So Nikita, you use candle patterns to confirm entry. Now, how clear candle patterns must be for you? I know it is enough for some traders that for example pinbar doesn’t open/close during previous candle etc. For some traders on the other hand patterns must be very pure.

So, what do you think?

Now I’m going to read thread again.

this thread has been great so thank you nikita. For those interested in another good thread on price action, check out the following thread

Forex price action