Price action

[borat]

Hi All,

I've been googling the term 'price action', have read some previous posts here on the ASF and looked through a few books that I have on technical analysis, but all the information I find is a bit thin.

From what I've read here previously there is allot of reference to 'price action', it has also been mentioned in a previous thread that i'd initiated and it seems that it is an important consideration when analysing a stock.

What I understand at present is that it's often a fundamental indicator of the movement of a stock price, being a combination of buying/selling volume and the OHLC movement of a price ever a variety of time frames. Noting higher highs, lower highs, higher lows and lower lows to determine you entry or exit of a stock.

I wanted to start this thread to initiate discussion regarding 'price action' and volume as well to here your thoughts and comments.

Thanks and looking forward to your posts.

 

[It's Snake Pliskin]

Hi All,

I've been googling the term 'price action', have read some previous posts here on the ASF and looked through a few books that I have on technical analysis, but all the information I find is a bit thin.

From what I've read here previously there is allot of reference to 'price action', it has also been mentioned in a previous thread that i'd initiated and it seems that it is an important consideration when analysing a stock.

What I understand at present is that it's often a fundamental indicator of the movement of a stock price, being a combination of buying/selling volume and the OHLC movement of a price ever a variety of time frames. Noting higher highs, lower highs, higher lows and lower lows to determine you entry or exit of a stock.

I wanted to start this thread to initiate discussion regarding 'price action' and volume as well to here your thoughts and comments.

Thanks and looking forward to your posts.

Jgshemat Borat,

the term is a bit cryptic.

Price is everything, value, perception, action, result etc...

 

[theasxgorilla]

Price action, to me, is the transacted price of an order to buy and sell. It must be both buy and sell for without one the other cannot transact. This is why prices move (price action), buyers and sellers move up and down the price range to meet one another and get their orders filled.

There is totally raw price action in the form of a list of orders ie. x shares at y price. There are also summaries of price action in the form of bars or candles. As you pointed out, they convey an open, a high, a low and a close and a volume. The volume indicates the amount of shares transacted during the timeframe that the bar or candle summaries.

Its all a convoluted way of describing what chartists use to try and get insight into what has happened in the computerised quagmire of moderns markets.

If you can understand how summaries of price action with volume tell a story about the players in the market you'll be on your way toward understanding the theories of Volume Spread Analysis (VSA).

 

[borat]

Thanks for the feedback guys, I guess the term is a bit cryptic and I'll start looking at it from a different angle.

What I'd previously read through other posts was the relation between volume and the price movement and how they can be analyzed to preempt movement and pick either an entry or an exit. I also use some indicators, but find they can often lag. But I still use then just for testing.

How do you all use the combination of price volume to trade a stock? You all would have your own special methods and I welcome you to share them, it’ll help enlighten my understanding.

I’ll post some charts soon and point out a few key points that I think are worth discussing, I hope that they stimulate some discussion.

 

[CanOz]

Thanks for the feedback guys, I guess the term is a bit cryptic and I'll start looking at it from a different angle.

What I'd previously read through other posts was the relation between volume and the price movement and how they can be analyzed to preempt movement and pick either an entry or an exit. I also use some indicators, but find they can often lag. But I still use then just for testing.

How do you all use the combination of price volume to trade a stock? You all would have your own special methods and I welcome you to share them, it’ll help enlighten my understanding.

I’ll post some charts soon and point out a few key points that I think are worth discussing, I hope that they stimulate some discussion.

Hi Borat.

There is some discussion on how to use VSA etc. to put it all together for an entry signal etc. on the Open Book Trading Plan thread, and some great input from Motorway, Tech A, and the rest. Basically you want to combine a number of things to increase the probabilities in your favour, providing that you are already squewing the numbers in your favour with good money management techniques right...

In my opinion i only want to be taking trades with high probability, high Reward for the Risk employed...and price action helps to determine if the demand is there for the stock to carry on in the direction you favor.

Cheers,

You want to be looking

 

[borat]

cheers can,

do you know what threads specifically? I've been reading all the free text on nick radges site, it covers allot of price action and volume. Thinking to do his course as well as I've had allot of my answers answered from what I've read so far. Anyone else done his online courses and car to comment?

B.