Hey guys I just got a book on price action & trading without indicators and it looks excellent. I started a thread for discussing the book, my goal is that people who are reading the book can share their comments, ask questions, and post some charts using the material in the book. Jeff I think this book would be great for you. The guy trades ES on 5 min chart with only 20 EMA.

So here's the link:

Book Discussion: Reading Price Charts Bar by Bar by Al Brooks In the Holy Grail thread Garry recommended this book (: "Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader (Wiley Trading)" Amazon.com: Reading Price Charts Bar by Bar: The Technical Analysis of Price …

Yes..... I've heard good things about this book.... I'll order it.

Blz17 

LOL, come on! I knew what I was trying to ask. Okay, that was very helpful. One additional question. The statistics you use to complete the frequency distribution, is there a specific resource for that information or do you obtain that by doing your own data mining? Thanks once again. Blz

I am using MetaTrader 4. Many different brokers offer MT4 and live data feeds for free. I have several accounts. Alpari and ODL are 2 that I use.

I only use MT4 for charting.

I use MB Trading for trading and they also offer MT4.

Skid 

If I turn left will this make me right? Skid

"Right"? I do not know.

Profitable, yes!!

wuolong 

1) how do you judge when a BLACK SWAN event has gone in your favor? 2)In other words, what qualifies as a BLACK SWAN event?

1) The profit/loss column is positive.

2) A huge unexpected move.

gannman 

Thanks TRO...your high/low of the day reversal trade in particular appeals to me. Genius in its simplicity. Thank you for your generous contributions to this thread...I think I've learned more practical knowledge about trading reading this thread than the $1000's I've spent at Amazon on trading books! Cheers Simon

It is NOT "mine". I am sure traders did this before I was born.

What I have "added" is applied statistics to price movement. I did this first with stocks and then with forex.

Remember what H. Rearden said:

Now, 2 patterns of market behaviour happen on a regular basis:

1) the price breaks to new high's (or low's)

2) the price reverses from new high's (or low's)


If price is NOT making a new low then it must be reversing from the low.

If price is NOT making a new high then it must be reversing from the high.

This is simple. Too simple for most traders. Instead of trusting what their eyes SEE, then want indicators to tell them what price is doing. That morphs into indicators that tell them what price IS GOING TO DO and that is their downfall. The rat beats them.

cunparis 

Hey guys I just got a book on price action & trading without indicators and it looks excellent. I started a thread for discussing the book, my goal is that people who are reading the book can share their comments, ask questions, and post some charts using the material in the book. Jeff I think this book would be great for you. The guy trades ES on 5 min chart with only 20 EMA. So here's the link: Book Discussion: Reading Price Charts Bar by Bar by Al Brooks In the Holy Grail thread Garry recommended this book (: "Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader (Wiley Trading)" Amazon.com: Reading Price Charts Bar by Bar: The Technical Analysis of Price …

If I am not mistaken the 20 EMA IS AN INDICATOR!!

Let me guess where the discussion will head...

Someone will introduce another EMA like the 50 or 200.

Someone will talk about the EMA crossovers.

Someone will talk about multiple chart periods.

Sooner or later someone will want to add ADX or PSAR to "filter" out "bad" trades.

And the result will be that the rat will beat them all!!

TheRumpledOne 

If I am not mistaken the 20 EMA IS AN INDICATOR!! Let me guess where the discussion will head... Someone will introduce another EMA like the 50 or 200. Someone will talk about the EMA crossovers. Someone will talk about multiple chart periods. Sooner or later someone will want to add ADX or PSAR to "filter" out "bad" trades. And the result will be that the rat will beat them all!!

Of course people will do that and we'll be the rat!

Not all indicators are created equal.

Some are squiggly line, lagging indicators.

Some are gauges that tell you where price is, in relation to other prices, in real time.

Price tells you all you need to know.