Do you have any Mechanical Trading Systems?
I went through your videos and I have a question. The scalp and day trading videos indicate
we can take trades almost ever other bar. Have you done any back-tests on this to see if it was profitable.
Does it work better on higher time frames? Do any trend filters need to be added? Do you have any mechanical trading systems?
Thanks and Regards.
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What is price action trading?
Price action trading is one of the most common concepts to the traders nowadays.
The concept of price action trading embodies the analysis of basic price movement as a methodology for financial speculation.
Price action trading is used by many retail traders and often institutionally where algorithmic trading is not employed.
It ignores the fundamental factors of a security and looks primarily at the security’s price history.
Though sometimes it considers values derived from that price history, it is a form of technical analysis.
What differentiates it from most forms of technical analysis is that its main focus.
Its focus is the relation of a security’s current price to its past prices as opposed to values derived from the price history.
This past history includes swing highs and swing lows, trend lines, and support and resistance levels.
Price action is simply how prices change and the action of price.
It is readily observed in markets where liquidity and price volatility are highest, but anything that is bought or sold freely in a market will demonstrate price action.
It includes a large part of the methodology employed by floor traders and tape readers.
It can also optionally include analysis of volume and level 2 quotes.
The trader observes the relative size, shape, position, growth (when watching the current real-time price) and volume (optionally) of the bars on an OHLC bar or candlestick chart.
The use of price action analysis for financial speculation doesn’t exclude the simultaneous use of other techniques of analysis.
On the other hand, a minimalist price action trader can rely completely on the behavioral interpretation of price action to build a trading strategy.
Price action trading is a very deep subject to deal with for any beginner.
But it is a very important thing for the traders to have the basic knowledge of price action trading.