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Reply to davidwt
Hi davidwt,
Price Action is the movement of prices as you see it on a bar chart, regardless of time frame.
You are correct as to what a price bar is, in essence it is an indicator, but that doesn't matter. You still are relegated to trading what you see. Since all other indicators are base on those price bars, they are all secondary to the price action you see via the bar chart.
Let me give you an example of why it doesn't matter. When I was daytrading the full S&P 500 contract, before they cut it in half, the data I saw on my screen was at least 17 seconds old. I was using the fastest data feed available to me and the most cutting-edge computer I could find in order to cut the time down to 17 seconds.
From the time I saw the prices (17 seconds old) until I could hit my phone dialer, reach my private broker directly on the trading floor and receive a fill it was at very best 45 seconds. Yet I had to trade what I saw, and I still came out ahead every year that I traded the full S&P 500. The reality is that prices were constantly ticking up and down. I usually was filled at my price, which is all that mattered to me.
I hope that answers your question. You have to trade what you see regardless of time frame. That's all you have to go on.
Best,
JR
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