Friday, January 18, 2008

The Power of Price Action

Let's talk about the different of price action ( PA ) and the system that using Lagging or Leading indicator.In my perspective, i find that both of this method are power full...only if they combine when to made a trade call.Couple years ago..i used purely price action to enter the market..such as pin bar, inside bar, outside bar, chart pattern like H&S or Inverted H&S combine with Fib R to put tp ( usually i put sl basicly by price action..meaning for example..when i find a good setup of a pin bar..then I'll put the sl on the nose +3 pips ). After year of using that methodology, i find it quit nice and generate some profit.But that's not the point..my aim is to have a comfort method..that result a good comparison of winning and losing trade (by quality and quantity). Like any other trader..i keep my self evolve..open to many new thing on this business. Then couple months ago, I find a system (..note it..find, not create).System that use many indicators, both lagging and leading indicator.Soon after that..after read it all over and over, I decide to try it..try it on demo first :P.Then I found that many times, just when the system show a good signal of trade..my price action tell me the opposite.And that quit annoying to me since I really don't know..should it test it pure by the system on demo and continue my live trade by price action or what..I cant get rid of my mind of price action setup each time that system show a signal.After having a bad time of result on demo..i don't give..that sometimes i found that the system tell me to short..my PA tell me not yet..still not confirmed by the price..or sometimes..and vice verse..But what make really happy is there is a time when both of them give a signal..and it usually a class A trade.Then I keep working on how to synchronize both of the method..It's a good combination..both of them filter out each other ( No method are give a 100% signal that end up with a profit ). For those who trade purely just by price action..i strongly suggest that u apply it to a system..u'll find it amazing.As for me now I'm comfort enough on my trading journey.BTW the system that using indicator that i mention above is EZ Forex system..hmm not want to be part of their marketing staff here, I change here and there but the core is basically from that system. LOL..as i write on my blog, the market vewwy vewwy quite..my bpjy profit by 2 pips and my UsJy -2 pips.Will wait the price..y'all know reward of patient right? :P.happy trade all

NB:any bad word or miss typo? forgive me my son :P..to lazy to check them again.

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