Understanding Price Action: Practical Analysis of the 5-Minute Time Frame by Bob Volman

Summary

The book addresses Forex exclusively. While he claims that the methods “are applicable to all markets,” I disagree. Markets have some general similarities, but they also have prominent differences. I think his methods would work on the S&P, but they almost certainly work better on Forex which I don’t trade. I nevertheless recommend this book for a serious trader’s library, although not as heartily as I had originally thought.


Book Information

Understanding Price Action: Practical Analysis of the 5-Minute Time Frame
Written by Bob Volman
Light Tower Publishing, 2014.

Rating

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Veritasium: Would You Take This Bet?

Real life experiment with people on rational decision making.

Our human nature plays a big part in our lives on the decisions we make. Traders are especially haunted by our bias towards risk aversion as losses of any kind is almost automatically translated into a form of pain or threat. Being able to overcome that in one situation does not mean that you can make the right decision next time in a different situation. Hence our struggle as a trader against our human nature is a fight we have to carry on all the time.