Big Mike's Trading Blog

Day trading futures, discussing money management and trade management techniques, and more

Example/Tutorial of real-time Price Action Trading

The purpose of this video was to draw in real-time the HH+HL, LH+LL of the market, and then to trade those levels.  I show you the exact entry price for each setup.  The stop for each setup would be 1 tick outside of the last price action marker, in other words -- where the setup would "fail".

I forgot to mention in the video that the paintbars are colored by what side of the ADXVMA indicator they are on.  This is the same indicator mentioned above.  This indicator and paintbar coloring was not used in any way during the video, I simply forgot to turn them off and I like having them on anyway :)

Some setups have higher risk than others due to the distance from entry to that stop point.  I also talk about how to place your targets using prior price action as a guide.

Example/Tutorial of Real-time Price Action Trading from Big Mike Trading on Vimeo.

I placed the price action markers in real time as I was scrolling through the chart.  This is the exact same thing that I do for my chart that I trade from.  I usually label them pretty quick, like I did in this example video and I think with time so can you.  If things are moving too quick you'll want to try a larger chart.

For this particular trading style (trading breakouts) a range chart works best.  The price action discussed in the video is really just the most basic examples.  For more complex examples sometimes a 5 minute chart works better.  You'll need to experiment to find what works best for you, as it is my belief it is subjective.

Please share your feedback so I can incorporate it into the next video...  Use the Price Action thread on the forum.


P.S.  I just watched the video, I wasn't too clear in a couple spots but I think overall it went well.  I'll try to be a bit more clear next time.  I haven't slept yet so am a bit tired :)


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