Help with a price pattern question

[⭐ esperanza]

Could someone please tell me if price action and price patterns are the same thing or not? If not, what's the difference? I tried to google the answer but couldn't find any. Thanks in advance.

[konorti]

Re: Help with a price pattern question

 

I think all price pattern is price action, but not all price action is a pattern. Price action is generally the feeling of bearish, bullish or sideways. For example testing a resistance or support is a price action, but is not a pattern. It is harder to talk about price action, as it is usually complicated to write it in words and if sy did it finally it became a pattern in the past. I hope this helped.

[⭐ esperanza]

Re: Help with a price pattern question

 

Thank you very much for your kind reply. Yes I understand the difference better now. I was looking at the website and couldn't figure out if price patterns and price action are the same thing. Thanks again.

[bimbo]

Re: Help with a price pattern question

 

Price action can be an individual Price Bar say A Doji,menas indecision in Japanese Candlestick,Or a Hammer which is a individual price bar in Japanese Candlestick.Where as Price patterns means a collection of or atleast 2-3 price bars say 1-2-3,Flags,Shoulder head shoulder ,Triangle etc which are a collection of more price bars

[Xerof]

Re: Help with a price pattern question

 

These are good websites for patterns and price action.

http://thepatternsite.com
http://www.trading-naked.com

Edited June 29, 2010 by Xerof

[⭐ esperanza]

Thank you very much, bimbo and Xerof

 

Xerof, I will take a look at those two sites. Thanks again everybody.

[sustainablegrowth]

Re: Help with a price pattern question

 

hi esperanza....

maybe this indikator will be help

http://indo-investasi.com/viewtopic.php?f=9&t=515

 

but the download link is not valid anymore

hiks...

 

yuks help me asked anybody will help us :((

because i think trading using pattern like head&shoulders willl much help :)

[daytrader]

Re: Help with a price pattern question

 

For automatic chart pattern recognition Autochartist is one of the best tools out there. It is strongly recommend for scanning. It's hard to do and very time consuming to manually find complex chart patterns.

[vagalume]

Re: Help with a price pattern question

 

price action is simply the up and down of price, price patterns is what can be formed during his movement, i. e. head and shoulder pattern which is then the basis of an educated trading decision

[sibu3168]

Re: Help with a price pattern question

 

Price action and price pattern are both different things. When a buyer & a seller agrees at a certain price level, a trade takes place. So every trade is a price action as it involves two different actions (i.e. buying and selling). Sometimes demand is so strong (whatever may be the reason - be it fundamental, insider news or anything else) that it pushes the prices to the higher level as people are willing to pay more prices. Similarly, sometimes supply was so strong that it pushes the prices to lower level. Sometimes, both buyer & seller are both confused but still don't want to let a trade miss as they think clarity will prevail after some time but in their favor. Again at each trade, a high level human psychology (sentiment) is involved. So after sometime, such type of psychology takes a definitive shape which is reflected in a series of trade i.e. price action. Such shapes are known as price patterns. Sometimes one has read those price patterns and gives some name like head & shoulder, flags, cup n handle etc. & sometimes one can't read those price patterns. So price action may not lead to a price pattern but a price pattern always emerges out of price action.