What do you think is the best (fastest) way to learn PA?

Hi,

since a while I am after a trading system that's discussed in a big thread in this forum. The trading system is based on price action, past price action, chart pattern, SR, MA's as floating support and resistance, multi timeframe...
Though I am trading this system since a year or a little longer I am far away from reading the charts and PA as perfect as the thread starter or the other senior trader in the thread perform.

I know it takes time to reach such a comfortable amount of mastering technical analysis but what would you think is the very best or quickest way to enhance the PA/chart reading skills?

I think, money managment it is the key. You must discover what suit you best. For example try to increase the win% at the expense of RRR, or quite contrary...

. . .and dont forget: becareful of new events

Hope this will help you ;-)

Quickest way, the best is to place cash and lose it. Nothing will inspire you faster...

If you're talking about Price Action that there is no higher authority on the subject than Steve Nison. . .why not even read his novels. Get your stuff from the original guy who interpreted the texts.

It's not difficult at all and using a little dediion to study is quite revealing.

Watch a TF chart. 1second-5minutes and the quote panel.

Hi,
I'm aware how significant MM, RM and discipline is but that is not the topic of the thread. The issue is I'm not a beginner anymore. I understand the major chart pattern such as shirts, triangles, HS. . .and I understand the most common candlestick pattern. Although I learnt the things I believe the way trader like J16 or EOHater understand what's going on in the market is a different world.

Reading the Steve Nison novels is something I aim for the future

I would not invest in books or some other course or ribbon. The main reason I state this is, everybody who trades price action appears at price differently. If you search out thread such as J16, you won't be learning price action. What your learning is the way one traders has discovered entrance points on the market and showing. In itself is not price action trading however a egy. You might learn and grasp it but you would still not have heard PA.. I see price action entirely different from traders on FF and vise versa because we have our own means of searching out entrances. PA is not only knowing about where to perform entry's, but about many aspects of reading and interpreting the market.

If you are serious about PA, start off with the basics. Hit Google and learn about Open, High, Low, Close (OHLC). In PA trading that's about as simple as you possibly can. In fact by knowing OHLC you can trade the market with no systems or egies. Trust me, many traders just trade the market based off the OHLC. Bear in mind that, most traders tend to make trading harder than it must be. Simple rule of trading is buy when the market is up and sell when the market is down. By learning OHLC, you are going to find that quote holds true.

Next thing is to Locate Your Bar. Find out about candlesticks and Bars (OHLC BAR) charts. Off the bat several traders select candlesticks because everybody uses candles. Known fact, 80% Foreign Exchange traders have no idea at how to read candlesticks. So learn the working of candles. Don't neglect to learn all about wedges too. I'm a little biased for Bar charts as they have always been my secret weapon that I never told anyone. You'll see that I post a lot of charts in Candlestick type as because that is what traders are familiar with. I HATE candlesticks. Bar (OHLC BAR charts) are a whole lot easier to read and when you understand how to trade OPEN HIGH LOW CLOSE you will agree with me. The idea of Bar chart would be , left side of the bar opens right and high side closes low = you got a downwards trend. Vise versa for the other side. Exchange and thats how simple it is to read bar charts.

As soon as you've heard those fundamentals and feel you want a egy, now to you search FF and the internet for price action egies. As I mentioned earlier, every trader is different and each egy is different. There's just two price action egies out there. Reversal egies Continuation egies. I am fond of reversals, therefore I study the candlestick formations with the high probable prospect of a solid price reversals, like: Dark Cloud Cover, Engulfments, Pin Bars, etc or lean price continuations installments, like: Advanced Block, Long Bodied, Three Crows, White Soldiers, etc.. Learning price hesitation formations, for example: Dojo, Hammers, Inverted Hammers; learning these formations close to a S/R degree should inform you that the trend is about to change since price is hesitating to last. It never hurts to also learn Sub-egies, for example: Tweezers (modification ), Double Top (modification ), Head Shoulders, Cup, and anything else taught in threads and books like J16.

In the event that you genuinely need to learn price action, start off with the fundamentals, OHLC. OPEN HIGH LOW CLOSE is all you need to trade price action. Get to studying!!!


TO RECAP:
1) Learn about OPEN HIGH LOW CLOSE on Candlesticks and Bar Charts
2) Decided which is a better match for you. Candlesticks or Bar Charts?
3)Should you decide Candlestick trading is for you, then learn Candlestick formations. Google Candlestick Patterns or Candlestick Formations. Do the same if you opt to trade user Bar charts.
4) Find out a subset of patterns, for example double tops and double bottoms, tweezers, etc..

Here are some links for you started.:
http://www.thebluecollarinvestor.com...sticks-charts/
http://www.candlestickgenius.com/can..._patterns.html
http://www.candlestickshop.com/glossary/index.html
http://www.investopedia.com/articles...ps-bottoms.asp
http://www.learntotradethemarket.com...n-trading-egy/

Locate 1 trade setup that meets your beliefs, just 1 trade, start a live micro account and hunt for your trade daily. Use as little discretion as possible. Don't search for anything else. Don't trade if your trade is not there. Pull on that trigger, if its there do not hesitate. After a while youll find you get better and better, until you become its master.

Just one stupid commerce, thats all you want.

Quote:

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Originally Posted by ;

Find one trade setup that meets your beliefs, just one trade, open a stay micro account and search for your trade daily. Use as little discretion as possible in the start. Do not search for anything else. If your trade isn't there, don't trade. Pull on that trigger, if its there don't hesitate. After some time youll find you get better and better, until you become the master of it.

Just one stupid trade, thats all you need.

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This really is the best response so far. It is wonderful how people respond to queries.

I suggest you buy Forex Tester 2. As the above suggests do, locate one setup, spend hours on FT. The real issue is that when we look back in a chart it's simple to observe setups. As they unfold seeing them is more difficult. Using FT is the best approach to do this.

Fastest approach?
Not really sure there's a speediest way--
I agree: locate 1 market, 1 time frame, 1 setup-- take action
cash mgmt: will help a lot
time: I am convinced 10,000 hrs is an adequate amount.

best way? --prob the approach. Assume you will not be great at it to get another 5 to ten years, but the next 10-25 years can likely make you wealthy for the rest of your life... instead of having high expectations; take the pressure off of your self. Trade with money you can care less about.


Finest!