Registered: Feb 2006
03-24-08 03:32 AM
Quote from HolyGrail:
I mentioned earlier when you use pnf for intraday trading you have to be aware of your potential setups BEFORE they materialize. With the current state of volatility you can miss some really great moves. When I trade es intraday I use 3 charts with different box sizes. I do this ONLY because there are few setups I want to trade. One setup may appear on one chart but not on another. I want to have as many good trading opportunities as I can during the day. My preference is to trade on the .75 chart
Under my normal trading, I am trying to get as many points as possible BEFORE there is a reversal. In doing so, I can be leaving many points on the table because the overall pattern may remain favorable even after a reversal.
This is why I mentioned you could decide to move your stops to one box below the last reversal. This will keep you in the trade longer. It will be up to you to decide on your strategy.
If you see a failed double top on a .5 chart you have to realize that the smaller box size is easily reversed and you cannot expect as much profit potential had that same signal appeared on the .75 chart. Now if I take the trade based on the .5, and the failed double top later appears on the .75 or at least some type of bearish signal appeared on the .75 , I will now base my target and stop on the information in the .75 chart.
HG, thanks for that.
I understand the concept. If you have some time could you post an example?
Thanks very much.