sravanreddy.226
Education

Price Action vs Value, Which of these are good for trading ?

NSE:BANKNIFTY   NIFTY BANK
What is Value and its associated factors?

Value represents the importance or Worth of any object/asset when compared it with other items.

What is Price?

Price is a Number that represent Value of the Object/Asset.

So, Now with the above statement, we can simply come to conclusion which is better of these two. Value is the King.

How to find the value and does our Indicators helps us to find it?

More than 90% of the Real time indicators takes the price as an input and sends the Price as an out put in an analytical format. And none of them represents the value

Example: Major Indicators like MACD , Stochastics, RSI , ADX , Bollinger , channels etc.. uses price as an Input, the output is price
.

Indicators that represents Value: Volume Profile , Market Profile, Breadth tools helps us to find the value regions.

So when trading any asset, if you can associate Value Based tools with Price based indicators you can see pretty good results and will help you to understand the VALUE SHIFT and price representing it.

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For more questions, please write a comment here.






You make a good point that certain tools tell us about Value.Not too many people think along those lines. Perhaps you can add Price S/R Clusters as another indicator of value (so price turning into value, as it were!!).
However, one more point to add here.
Value is easily understood in a fundamentally analysed stock. But in a technically analysed stock, particularly when Trading is the intent, Value is often confused with Profits that one is likely to get or the Risk of loss that one is likely to run. People assess the 'worth'of a trade largely from a R:R angle.
This is another, and more widely utilised, usage of the word Value in a technical context. Just my two cents.
Cheers. CKN.
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@ckn, Thanks for the positive comment, By including session point of controls with Market Internals can tell us the short term value location and High transactional points, based on that we can make decision for intraday trading.
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ckn sravanreddy.226
@sravanreddy.226, That is true. However, if one is trying to really find Value or Worth, it is better to do it over the longer time frame as value is something that persists (should) and enables moves over a longer period of time. So while MProfile does a good job of identifying inflexion points on an intra day basis and aids in trading, one should, ideally, take a view on value extending across multi days/weeks, and this enable us plan a full campaign than just battle for the day!
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@ckn, I agree with your statement :)
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