I am starting a six week learning cycle on my demo account. I am trading off nothing but price action for six weeks. Candlesticks for a newbie seemed like reading tea leaves. I avoided studying them due to confusion. I think this would benefit everybodies education if they would give it a try. I don’t feel I have a good grasp on the markets by only depending blindly on indicators. Hopefully this will be fun and profitable. I have no grand expectations but I bet when I am done I will have another weapon in my arsenal.
I am in your shoes right now on things I am working with.Candlesticks are as close to present information as your going to get.They have been around since like 1850.I am getting the hang of them but see a great potentail in them
Excellent idea. If more newbies did this then they’d be able to understand the market and not just the indicators they use.
I also bet that, once you’re done, you won’t want to go back to using a bunch of indicators again.
I agree that this will be an amazing learning experience for you, and should be pretty fun. I’m excited to see how you do with it. I assume you’ll be watching trends, support and resistance, and candlestick patterns?
I admire your purist approach, but if you think it’s getting too hard to follow, I’d suggest a single EMA(200) and default stochastics as a slight aid. I don’t trade off of them, but they help with visualizing and understanding the PA, and I would recommend them. The EMA gives great context on your charts, so you don’t feel like you’re flying in the clouds, and helps you see the big trend (since the EMA is very long). All in all I think it allows you to still focus on the PA!
But that’s for later, enjoy your naked trading for the time being! haha
Price Action is an amazing tool, and just so happens to be the most profitable because it is the only leading indicator there is out there. It’s no surprise that many newbies opt for the indicators instead b/c it’ seems like a quick fix.
It is, but it is sooo misleading…If only newbies took the time to learn PA as much as they are determined to waste their time using just lagging indicators, there would probably be alot more stressless, consistent traders out there.
As for the tea leaves comment…lol, yes, upon first reading about all the different patterns and combonations and formations, it feels like forcing yourself to learn a new language…the market sentiments language.
Difficult the first couple of weeks (for me it was atleast) to grasp it all, but keep at it and your brain is forced to sort all the information and expereince you gain from practicing as you say you will…next thing ya know, your reading PA like a fluent french instructure.
It really is freckin awesome to be conciously aware of this phenomenon.
I am going to be concentrating on just a few of the reversal indicators. Match them with support and resistance, trend lines , Fibs and using the 00 and the 50’s. I am really excited right now as I can go back in the charts and just guess what shape the candle will be when bringing them up one by one. It is much more fun than backtesting with indicators. Your constantly having moments where you say to yourself,“I know where this is going” sometimes your and sometimes your wrong. Then you find yourself predicting how far back it will retrace. Its a kick!