Hello.

Met someone that supposedly makes great amounts of money largely trading by price action.

Anyway he was kind enough to advise me on his trades last week.

Penny / micro cap stocks that were in play.

The problem was, i was observing this and it made no sense.
He would often trade against the intra-day patterns that were forming.

e.g. A bullish ascending triangle broke down on increasing volume, at which point he bought a lot more.

Another e.g. In another example a stock that was doing *nothing* , no trend, no patterns, just random erratic movements, no consolidation. He bought in, and the next day it gapped up +10.


(i) Where can i learn how to analyze price/action? Any good books?

(ii) Volume can easily be faked, especially if the trader or syndicate is more than 1 party. How can you find dependable patterns observing the buy ups / sell downs?