Why Price Action Trading Is Garbage

Price Action Trading is a popular day trading strategy that utilizes many common mistakes to fool traders. By taking on excessive risk the strategy appears profitable at first, but falls apart under further scrutiny.

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Hypothetical Performance Disclosure:

Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

[rosshitchen-ijen]

You make some wild statements on your channel, man. For the past 20 years, I must be just guessing right.

[kylejohnson]

This guy managed to model all discretionary price action traders across all markets, and timeframes for all time. He did this using Ninjatrader and is still under the age of 60. An amazing feat of guru proportions.

[teebone]

I 100% agree. The best traders trade on probability not price action.

[comathisen]

It seems to me that if you have an edge that you can back test and you get results over a large number of trades, it doesn't matter if you use raw price action with a limited number of indicators or an arsenal of technical indicators/ technical analysis.

[fernandohalmo]

When you observe price, what you are looking at is a history or traded prices. These trades have already happened. When you look at a chart of price over time, you are literally looking at a representation of completed trades. Some interpretation of price, as long as you can relate it back to market psychology will always be relevant, no one interpretation will always be correct. Interpreting price action will always be relevant, and it will always be backwards-looking. You will always be looking at the past.

[Tunka]

So, What do you use to make money in the market's.

[timchurch]

So according to you, orders move price (and I agree). Price action is simply stripping away as much based analysis as possible, in order to get an idea of that order flow (without using footprint charts and so on). For example, you see a swing high where stop orders will be sitting, price comes and runs those stops and prints a big green bar. That's price action.

But the fact that orders are moving price doesn't mean "price action is garbage" or "price is bs". The whole point is to buy and sell things at different prices. If there were no prices, and just orders hitting the book, wouldn't make a lot of rational sense would it lol

I think you're being divisive and trying to hate on al brooks because you don't like scalping and you are still hung up on static R:R values that only exist in the abstract. Im not sure how scalping is excessive risk that other participants aren't willing to take on...other participants are taking on their own risks and if your risk is 1:3, your win rate can just drop enough to where you lose just as much money as a 2:1 scalper does. I dont worry about RR (I don't disrespect it on purpose, but I don't try to micro manage it in the abstract). If I take a trade, I look for places where lots of stop orders are going to be sitting on the other side to propel prices in my direction, and other things like that. I call it price action, you call it order flow.

[amorfati]

Even Orderflow seems like a Advanced and little more scientific version of Al Brooks Price action.
My Only question is; what is the guarantee that you would learn and get better enough at Orderflow analysis and in how many years?

[Xyz-nxul]

Got it - you have no understanding of price action.

[BillyJakeBulda]

so the people make money using price action is not true money??

[CSaenz]

i could argue order flow is not valuable as firms are getting in and out 30 times before sticking to a position and you could be guessing trying to read passive and aggressive orders

[morningstar]

I really wished i saw this vid when I started trading. After admiting that TA doesn't work, I was opened to a whole new world of logical trading that made me profitable it been now 4 years of consistency without TA, PA and many other retail theories that by now seems stupid and fooling to me😤😤

[maxztly]

I am Trading for 4 years now and yes that is what discoverd too

[dillonradish]

Thanks for the information bro earned my sub for sure

[CSaenz]

have you looked at al brooks probably the best argument about your opinion

[davidplyler]

I have no idea what this rant was about. He didn't give his definition of price action trading, I've heard several. I'll watch the last 2 minutes maybe it'll make sense.

[tyqweqe]

but the biggest price action influencer out there is ICT. And he has backtested his system and live traded for years now.

[blueboyd]

Oh seth really..I appreached hearing your opinion. Every few years some old technique it fashioned into the new way to trade...I recall way back the the in vogue thing was to buy breakouts lol good video

[ANSH-wg]

Price action is overrated only probability and risk management work i didn't meet a single Real guy who create fortune by fkin chart trading by price action
I am also a Trader in DII Firm in India and i said this from my experience

[samanwayphotography]

Price action works because it doesn't work X'D