I am getting my emotions under control and understanding price action more and more. She is very happy to leave me to it and keep me topped up with coffee! I am one who certainly appreciates your efforts and have learned tremendously from them. Started this weekend, I went back to each session that you had a video on. I learned a lot by watching the videos, reading the manual, and studying the hundred plus examples. Just to get to the state of consistent profitability.
Price Action Trading for the ES You could spend no money and learn Mack's Price Action Trading style. He does a review video almost every day of the ES and points out the trades he saw and what he recommends. He also goes into detail about other trading parameters such as psychology, money management and of course the technical aspects.
It is hard to explain but it is a bit like a light has gone on in the last few weeks. I see setups in advance, I know exactly where and how I will be entering, the discipline to be patient but then the confidence to place orders quickly. If I miss a trade now I just shrug my shoulders and move onto the next. I had been over managing my trades and moving stops so I watched your video again.
I am the wrong side of 50, a very logical thinker and averse to taking risk so I probably have a lot of challenges trading, but through hard work, following PATS rules, changing my thinking and a lot of time studying charts I am eradicating doubts and developing my self confidence, belief and experiencing regular success.
We are having one of the best Snow seasons for years here in Australia so I am having a short break as reward for all the hard work. Just wanted to wish you and your family happy holidays. Thanks for all of your hard work. I am still in sim but feel as though I am finally starting to understand a bit more about price action.
The premium section of the site has been very helpful. I would like to thank you for what you are doing. I really appreciate all the video and the Web site. I have improved my trading since I use your technic. Its unbeliveble how I can read the market now. I trade since 5 years and for the first time I was able to explain to my wife my entry point. It was like I was reading a book. I feel so confident since I use your technic as well. I use a 6E and the ES on a tick chart.
It works like a charm. I was just looking through some of your older articles in the non-member section, I never realized that there were so many past articles, good stuff. A couple ideas I came across for the member section might be a talk about resting orders and supply and demand. I read those articles and found them informative.
I can only hope to pay it forward someday. I know you catch some grief from the whiners, non-believers , and losers. I bought the manual a month or two ago, been watching all the videos, studying my charts, and sim trading.
I had the typical runs of success, but zero consistency. I made some advancement by studying price action from a forum on Elite Trader. It helped but there were still missing pieces of the puzzle. I actually gave up about two years ago.
Threw in the towel. I am sorry to say that I never bought your manual. Just want to express my deepest appreciation for all you do. Day trading the ES is much more compatible with my personality, no overnight risk exposure like shorting option premium.
You have found a way to remove much of the subjectivity out of explaining price action. You are the only person I have heard publicly do this. Thanks and keep up the good work as long as you can. This is no fluke, I can assure you and he is putting the heat on grandpa to turn him lose over summer vacation. Hmm, still mulling that one over. But, you never saw a calmer trader in your life. He is like Tiger Woods with a golf club. This kid has ice in his veins and I believe he is going to be one of the greatest traders I have ever known, if he sticks with it.
I share this because of my respect for the tireless work you do on the behalf of so many. I also feel that you and your work are under-appreciated by the people who follow you and I wanted you to know how much my family appreciates everything you do.
For those naysayers, who doubt you and your work, feel free to say you know a 13 year old who has taken to this like a duck to water. My best to you and your family. Today I normally would have been chopped up but patience and discipline and your teachings have proven invaluable. I was not quite as on the short side as I should have been but I spotted the trades and deemed them risky as the entry was so close to the existing low and a couple of those trades were not ideal.
I had already made two solid trades so I waited again for a set up. I did not pick bottoms or tops just sat and waited for whatever opportunity was presented. You can see my last trade, a failed second entry short after a second trend line break and strong buying off the low. Trade executed, symmetry target acquired and eventually hit. Okay I promise no more emails for a bit…. I can honestly say that I spend time everyday either reading the manual, reviewing your videos on you tube, or reading articles on your website.
I said that to say keep on doing what you are doing. I am one who certainly appreciates your efforts and have learned tremendously from them. GM ———————————————— Hey Mack,.
I have poured over charts until my eyes have bugged out. I have reviewed my trades and kept a trade journal to help me learn from my mistakes as well as from my successes. I have been slowly but steadily improving. I recognize that this has been with a simulated account and I know that your heart beats differently when there is real money at risk, but I am ready to jump in the pool, so to speak. I have not only been working on my price action trading skills but I have also been honing my trading psychology.
I will keep you posted. You have indeed been a blessing to many and certainly have been a blessing to me and to my husband. May God continue to richly bless you and yours. Last week was my 1st one without any losing days. I read a lot of books and tried many ways in trading but there was often this feeling that I feel not comfortable with this or that style of trading. Then I found Al Brooks and was hooked with price action and wanted to learn anything about it and so I found also your website.
It was like a moment when the lights turned on as I read your manual. You showed a clear way for me, the beginning. I understood that not only Chance-Risk-Ratio and probability are important but also the probability of reaching the target and that is why your scalping style works. Reaching 4 ticks in the ES is very common.
Besides I study Al Brooks 3 books, your daily video lessons and the market. Thanks a lot Mack. Please, my apology for my English. My name is xxxxxxxx and I want to thank you for putting this wonderful manual accessible to everyone and just this past Monday I bought and downloaded this incredible Price Action System.
Your system is not really new to me as I bought the books from Al Brooks and read them more than 1 time, though it is similar you put it in such an easy manner that I finally get it and what it took Brooks 3 incredible long and hard to understand books you make it easy.
Anyway I just want to make the point that I traded SIM, unfortunately and the results where incredible. Attached is an Excel worksheet with the results and also an image of the chart with entry points. Any comments would be highly appreciate it. Thank you for the fantastic trading manual!!! This is what I have been searching for!! I want to learn everything I can about Price Action Trading and this information you share is….
I want to express sincere gratitude for your daily videos. Started this weekend, I went back to each session that you had a video on. I went bar by bar and marked all my entries. Then I would watch your video for that day to compare my entries vs. In my opinion, that is a form a deliberate practice that can accelerate the learning curve. I am very excited in repeating this exercise as much as possible in addition to my daily trading of course. Please keep doing what you do. I am grateful for your kindness and generosity.
BUT we have never given up! I hope someday to be as good as trader as you. I think your price is way to low for all the great advise and hard work you put into it. Trust me, I have paid thousands on systems and only got a fraction of what you are giving your students. Its funny but I never could trade the systems I brought because I never trusted them.
Deep inside I needed to know why price was moving in certain ways. I really feel with hard work and discipline that I will become a successful trader thanks to you. Hi Mack, I have been trying a successful trader for years but have failed miserably. I tried many markets and systems, tried all kind of time-frames, used almost every indicator known to mankind with the only result that I got more confused and desperate I have to support my wife and kid.
A few weeks ago, desperately looking for clues and answers I found your website, bought your manual and started studying your videos. For the first time in a loooooong time I am getting convinced that I can make it as a trader.
My results at the simulator are way beyond my expectations. Every night it is a joy to see that I draw the same lines as you and saw the same trading opportunities. I cannot believe this is happening.
I am really beginning to see the light, thanks to you, after so many years of struggling. Having done the rounds on various trading methods, all of which offered lower probabilities of success, discovering your approach was like turning a light on. Your manual is worth every cent.
Hello Mack, I had been a subscriber to Al Brooks for about a year. Today was the best of my trading career, 15 yrs-Floor trader, been off the floor for 5 yrs. Well, I took the plunge on Monday and have been trading real money for the last three days. I must say the results have been beyond my daily goals, better every day as I learn to trust my instincts.
Thanks to you I am finally starting to be profitable with my sim trading. Your advice is the best. Even though most of my trades are successful, its the mistakes that cut down on my profit.
I wanted to send you a mail to express my gratitude for the information you are making available for a nominal cost. I have been actively learning to trade for over 5 years — and have spent thousands of dollars and countless hours studying charts in this endeavor. I recently purchased your price action- Determining targets and Envelope strategies and am wowed by the information you provide. I spent some considerable time watching a lot of your videos and decided to try trading your methods mainly 2nd entry longs and shorts off MA and TL touch on a tick chart some weeks ago.
The results have been outstanding. These entries are very reliable. I am using 2 point target with 2 point risk on nearly all the trades. The results for me have been great! Practice the trading psychology. Anyways, Thanks for everything and happy trading! WL Vacaville, CA ————————————. AH Mesa, AZ ————————————. I have been trying to accomplish being a profitable trader now for 4 years. I hate to admit it but I was just about to give up until I found this and you.
But I documented them and they could be checked. I just wanted to drop you a note to say thanks for your Price Action Manual, it contains excellent information. They rely on technical analysis but not on conventional indicators. They instead use a combination of price movement, chart patterns, volume, and other raw data from the market to determine whether or not they will make a trade.
To detractors, price action traders are simplistic or minimalist in approach, but the methodology is not in fact any easier than other trading strategies. Successful price action traders must still know a good deal about how markets work. One positive thing about price action trading is that it tends to work in any type of market, so it can be transferred to all types of investments.
At its purest, price action trading constitutes tape reading. Tape readers follow the time and sales window and depth of market DOM. There is no other information needed; trades are taken on the basis of order flow. Price action trading typically involves reading price history. They take this process beyond drawing basic support and resistance lines, choosing instead to look for the explanation as to what happened, why it happened, and whether it will happen again in the future.
Price action trading does not rely on extra software. It is free and can be accomplished simply by tracking price charts. I have listed candlesticks here because this is the most popular form of charting in today's trading world.
Historically, point and figure charts, line graphs and bar graphs were the raves of their day. Not to make things too open-ended at the start, but you can use the charting method of your choice. There is no hard line here. However, for the sake of not turning this into a thesis paper, we will focus on candlesticks. The below image gives you the structure of a candlestick. To learn more about candlesticks, please visit this article that goes into detail about specific formations and techniques.
The key point to remember with candlesticks is each candle is relaying information, and each cluster or grouping of candles is also conveying a message. You have to begin to think of the market in layers.
This is a simple item to identify on the chart, and as a retail investor, you are likely most familiar with this formation. A bullish trend develops when there is a grouping of candlesticks that extend up and to the right. The key thing to look for is that as the stock goes on to make a new high, the subsequent retracement should never overlap with the prior high.
This ensures the stock is trending and moving in the right direction. Bearish trends are not fun for most retail traders. Shorting selling a stock you do not own is likely something you are not familiar with or have any interests in doing. However, if you are trading this is something you will need to learn to be comfortable with doing. This formation is the opposite of the bullish trend. This is where a security will trend at a degree angle. Get ready for this statement, because it is big.
Rarely will securities trend all day in one direction. You will set your morning range within the first hour, then the rest of the day is just a series of head fakes. If you can re-imagine the charts in these more abstract terms, it is easy to size up a security's next move quickly.
Flat markets are the ones where you can lose the most money as well. Reason being, your expectations and what the market can produce will not be in alignment. When the market is in a tight range, big gains are unlikely. The main thing you need to focus on in tight ranges is to buy low and sell high.
For those unfamiliar with an outside bar, an example of a bullish outside bar is when the low of the current day exceeds the previous day's low, but the stock rallies and closes above the previous day's high. Therefore, it's not just about finding an outside candlestick and placing a trade. As you can see in the above chart of Cambrex CBM , it's best to find an outside day after a major break of a trend. In the CBM example, there was an uptrend for almost 3 hours on a 5-minute chart prior to the start of the break down.
After the break, CBM experienced an outside down day, which then led to a nice sell off into the early afternoon. A spring is when a stock tests the low of a range, only to quickly come back into the trading zone and kickoff a new trend. I like to use volume when confirming a spring; however, the focus of this article is to explore price action strategies, so we will zone in on the candlesticks.
The one common misinterpretation of springs is traders wait for the last swing low to be breached. Trading setups rarely fit your exact requirement, so there is no point in obsessing a few cents. To illustrate this point, please have a look at the below example of a spring setup.
Notice how the previous low was never breached, but you could tell from the price action the stock reversed nicely off the low and a long trade was in play. Inside bars are when you have many candlesticks clumped together as the price action starts to coil at resistance or support.
The candlesticks will fit inside of the high and low of a recent swing point as the dominant traders suppress the stock to accumulate more shares. To illustrate a series of inside bars after a breakout, please take a look at the following chart.
This chart of Neonode is truly unique, because the stock had a breakout after the fourth attempt at busting the high. Then there were two inside bars that refused to give back any of the breakout gains. Please note inside bars can also occur prior to a breakout, which strengthens the odds the stock will eventually breakthrough resistance.
This is honestly my favorite setup for trading. I love it when a stock hovers at resistance and refuses to back off. This is a sign to you that things are likely going to heat up. The other benefit of inside bars is it gives you a clean set of bars to place your stops under. This way you are not basing your stop on one indicator or the low of one candlestick.
Are you able to see the consistent price action in these charts? If not, were you able to read the title of the setup or the caption in both images?
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Follow Price Action Trends – Forex Trading System I have read six of Laurentiu Damir’s books so far, and I highly recommend them all. I especially liked the book “Follow Price Action Trends – Forex Trading System”. To be honest, I am still reading the book, but I ordered this book, "Trade the Momentum-Forex Trading System", and "How Price Action Trends-Forex Trading System and paid for each of them. On the inside, they are identical books. Price Action Trading Primer – What is price action? Why New Traders Should Start with Price Action – Start your learning journey right and save time. 5 Steps to Becoming a Price Action Trader – A step-by-step guide for the confused beginner.