Paul Tudor Jones is one of the greatest traders and money managers of his generation. He has had no losing years in his primary fund for decades. He was able to more than double his capital under management during the Black Monday Crash of 1987 while others faced huge drawdowns and account blow ups.
A price action trading system is a process for using price data to make buy and sell decisions on a watch list of charts. Price action trading attempts to use entry and exit signals that have an edge by creating good risk/reward ratios that lead to profitable trading with wins that add up to more than losses.
Price action patterns are the visual moves that happen on the chart from the interaction between buyers and sellers at different price levels
Here are five things to quantify before entering any trades. These areas should be based on the parameters of your own time frame and trading system.
The first step to becoming a better trader is abandoning you own opinions, predictions, and emotions in favor of trading the price action itself. Uptrends, downtrends, and trading ranges on charts become more clear when all personal biases are removed.