Although the BB and SMA were influencing price action, they were just triggering support and resistance skirmishes.
The "smart money" investors placing big block trades of 350+ contracts were just as wrong as I can be when sellers stepped in to reverse price below that broken resistance. Getting stopped out with 350 contracts must hurt.
I'm going to spend more time watching the T&S and order book. You learn more about what really drives the market than any indicator can tell you.
Thanks for the interest in one of my favorite topics, Reading Price Action.
One of the things that I want to make perfectly clear is that I use indicators, always have and probably always will. For me to tinker with their setting and see how many bars they
are behind the price action is always of interest to me. Do I need them, not at all, but they sure make trading more fun.
The DoubleMaPaint_Sharky is one of my favorites, (Thanks to Sharky & TheWizard) using that in conjunction with candles is just another thing to lessen the load of staring at candles.
It is very important to trade with whatever tools give you the most confidence and comfort while trading.
For me, indicators can almost be a security blanket, it's like you have a master trader always keeping you on track, and at the same time lessen the stress of trading, especially for newer traders.
What I would like to offer to the group is that on weekends, and more often as time permits, I will mark up a current chart that illustrates some of the things that I see while trading.
Your opinion may differ, that is fine, there are probably as many ways to trade the market as there are traders. There is no right or wrong, its only about which things ring true for you, and make you money. The things that ring true for me will be noted on the charts.
One of the things in trading that irritate me is all the guys that teach trading, (books, websites, DVD, seminars) and they themselves can not trade.
About 3 years ago I paid some good money to go to a 3 day seminar from a popular "expert".
One of the things listed in the advertisement was that we would trade live together every day for at least two hours. I thought to have one on one time with a "Master Trader" as he calls himself was worth the money and I would pick up some things to advance my learning.
I knew after the first days trading session, this guy didn't have a clue, but was he ever a great salesman. (Another advertising point was any profits made in the class would be split between the attendees)
After the first days session, I stayed later than everyone and got some one on one time with the Master. I made him a deal, like he made a deal with us to split the profits, that if he could make money while trading with the class I would give him $500.00. I never had to pay out the money and at the same time I learned a big lesson. If you claim the be the Master, Prove it, Prove it, Prove it.
The point that I want to drive home with this story for the newer traders, there is a lot of snake oil out there, find something that works for you. If the things that I say don't mesh the "holy grail" that you are building in your head as you learn, ignore it.
The attached chart shows my first point. If price action can't take out the premarket high it will reverse and go the opposite direction.
Have a great night, another more detailed chart will be forthcoming this weekend.
The following 2 users say Thank You to GarryM for this post:
I suppose your quoted post above must be referring to somebody else, not me. I never indicated anything "I know best".
I was requesting that you direct me to how to get the Ninja window "Pane" attachment in your post #1 on this thread. I also mentioned that I'll love this thread and I'll want to be able to read Price Action without the need for me to know Candle Stick nomenclatures/jargons (such as DOJI, SHOOTING STAR, HAMMER, etc); and I suppose that is what the Ninja window "Pane" attachment in your post #1 is about. By window, I mean Microsoft Windows pane.
There is nothing offensive in all what I've said. On the other hand, I'm appreciating the thread. I suppose that you could be mistakenly referring to me instead of somebody else.