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  1. #1
    Senior Member raymond09's Avatar

    Is PA not profitable? !!!

    So Iíve been perusing BOD, School of Pipsology, STRATS and Iíve watched Davidís video on PA and Iím sorry, but Iím still not figuring out how to effectively draw S/R lines. Well, at least I canít seem to make PA work more than 50% of the time.
    Iím really unsure of what Iím doing wrong. Does anyone have a moment to explain, in deep detail, exactly how to trade PA? Out of the hours I have spent online and reading books and articles and such, I always hear how PA is your #1 friend to be profitable... And it just wonít work. Iíve tried pairing it with BBs, EMAs, Pivot points, Ichi... Nothing works. Each additional indicator only works 50% of the time as well. Iíve even been recording my success rates so... Iím pretty sure. Even trying to just trade the trend across multiple time charts... no luck. Bounces backs and breaks donít seem to make a difference.
    Please help me!!

  2. #2
    Junior Member
    I, too, have had trouble trading price action. What I choose to do is trade in the middle of a trend and go for longer expiry times. The reason for the longer expiries is to bypass volatility within the short timeframes. Even though you are ITM with the trend, one five minute period can be enough to throw you OTM. I like my expiries to be closer to the 30 minute mark or so. I use the following indicators:
    6 EMA
    14 EMA
    26 EMA
    Bollinger Bands 20, 2
    PSAR 0.02, 0.20
    MACD 12, 26, 9

    The only reason for all these indicators is to monitor the stability of a trend. When all the indicators point to a solid trend, I will place my trade. Otherwise, I wait. It is far too easy to try to second guess the market which leads to rash trades. Trying to pick tops and bottoms is a game for those far smarter than I.
    Last edited by BinaryTango; 04-26-2013 at 05:14 PM.

  3. #3
    Specialist Member marvel's Avatar
    BinaryTango has really good sounding strategy. It is not actually pure PA, but it give the best of the technical analyzes and filter only the most probable signals. As BinaryTango already pointed out the Price Action theory is too complicated and it could not be traded properly without a tremendous experience in reading the charts bar by bar. It is also not necessary to be a PA expert to have a successful trader, as it is not necessary to pick exactly the tops and the bottoms to make money in the market.

  4. #4
    Active Member
    Quote Originally Posted by BinaryTango View Post
    I, too, have had trouble trading price action. What I choose to do is trade in the middle of a trend and go for longer expiry times. The reason for the longer expiries is to bypass volatility within the short timeframes. Even though you are ITM with the trend, one five minute period can be enough to throw you OTM. I like my expiries to be closer to the 30 minute mark or so. I use the following indicators:
    6 EMA
    14 EMA
    26 EMA
    Bollinger Bands 20, 2
    PSAR 0.02, 0.20
    MACD 12, 26, 9

    The only reason for all these indicators is to monitor the stability of a trend. When all the indicators point to a solid trend, I will place my trade. Otherwise, I wait. It is far too easy to try to second guess the market which leads to rash trades. Trying to pick tops and bottoms is a game for those far smarter than I.
    Hey man i'm new and i'm curious to know how you use these indicators to get a signal? Could you or someone else please explain. All the best

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