Why do I think PF-Analysis can help to understand and to make better decision?
To answer this question we first have to answer: what does not allow to any person to make right decision?
Everybody knows that there are a looooot of reasons, but my answer: the most important is - a delay. The Dramatic Delay (DD
) appears to be a shadow for any person's action on the market.
Leave the 21 sources of the DD (just saying that DD is included in the nature of the exchange and any other noisy data) and find out how PFA can decrease it.
Do not pay attention to attempts to predict the market: it's not helpful and for many people it is very dangerous: they easily become the blind slave of their own prediction.
Let's return to the PFA and the basic purpose of the PFT: honestly answer to the question: what is going on now?
PFT gives us the important addition to the question saying: "what is going on at that particular scale now?" And allows to choose the main and the secondary scales of the process (MS and SS).
For RURUSD scale 4 was choosed as the MS and scale 3 as SS while scale 1 and 2 are supporting scales for scale 3. Configuration at scale 3 (called "crane") shows us very possible turn up of bisector at the next turn up of the channel. It means that if it will happen we will see at scale 3 turn up of the channel of scale 4 before (!) it could been seen at scale 4 charts. It gives us an advantage and decreases our delay if we decide to enter in the channel moving up.
In other words" the PFA at Secondary Scale allow us to get information about that is going on at Main Scale before it become confirmed there.
For RURUSD this point of unconfirmed turn up is the point to exit from down channel and 1st risky point to enter up.
next posts will be about "how to enter in the channel" and about another advantages which can be taken from applying of the PFT