There are specific situations when price action trading should be employed, specifically the Atlas Line from DayTradetoWin. As seen in the image below, there are four reasons to use price action trading.
On August 18, 2010, what trading system did you use?
1. Market volatility – see how much price was jumping around? The unexpected rebound (boomerang effect) at 9:45 p.m. may have crippled your trading account if you were relying on shooting starts, doji methods, or anything other than a price action method. Using a system that is based on data other than real-time price can be dangerous.
2. Determining the highs and lows – the market wants to see how high it can reach and how low it can reach. Why subject yourself to the market’s manipulators when you could use the Atlas Line to see through this testing phase?
3. Confirming market action – the Atlas Line acts as a confirming tool for price. When price is above the line, traders should take long orders; when below, take it short. With other indicators that are not based on price or confirming market direction, how will you know what type of trades to take? How will you set your stop losses and profit targets?
Great site. A lot of useful information here. I’m sending it to some friends! i especially enjoy daytradetowin vidoes -thanks
hey,i like your post, will be referring a lot of friends about this. Keep blogging. Looking forward to reading your next post. Try to include some more videos of the atlasline indicator – cheers
Thanks for the tip!
I am going to add your blog to my list! These daytradetowin videos are great. price action is the only way to trade. see you at the trading seminar
Gracias por sus comentarios perspicaces. Espero visitar su sitio web en breve e mi gusta e-mini sp much o