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Understanding Price Action

sandman4x

New member
Please check out this cool seminar. I made some notes to recapitulate for people that don't really wanna watch the whole thing.



Market Cycles:
- Accumulation: Sideways, quiet cycle, low participation market.
- Mark Up: Up trend, interest is in higher lows (support cause they are the back bone). Higher highs are used to see continuation.
- Mark Down: Opposite of Mark Up
- Distribution: Confusion, wide range volatility, no trending, no accumulation


Market Moods:
- Accumulation: Boredom.
- Markup: Greed
- Markdown: Fear
- Distribution: Confusion


Market Memory:
This is how many days worth are needed to determine what is happening in a current time frame:
- 5mn chart: about 2 days worth of data you need for look back
- 15mn: 5 days
- 30mn: minimum 1 week, max 2 weeks
- 1 hour: 2 weeks
- 4 hours: 1 month, 6 weeks is ok.
- Daily: 1 year


Moving Averages:
200 SMA & 50 SMA meet is golden cross
34 EMA wave: Plot it on Close, High and Low and see what the market cycle is.


Clock Representation Of The Market:
- 12-2 o?clock: Up trend
- 3 o?clock: Accumulation
- 2-4 o?clock: distribution
- 4-6 o?clock: Down trend


Everything boils down to S&R


Fibos to add: 0.786, 0.886, 1.272, 1.886


Market Cycles Usefull Indicators:
- MAs great in trending markets
- Stochastic in distribution
- MACD in accumulation to find breakups and breakdowns and confirm short term momentum

I hope this helps new people.
 

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