emini daytrading with Point & figure

Discussion in 'Strategy Building' started by trader333, Oct 13, 2003.

  1. I'm doing some tests on P&F but I'm having a hard time understanding the basic concept. I need help.

    In all the charting packages I've seen, when a bar reverses you get something that looks like:


    The X or up box is always one boxsize higher than the next O or downbox. Assume the following:

    Box Size = .5
    Boxes for reversal = 1

    Price pushes up to 1050.00 (the top X in the example above). Then at what price has the first O drawn? It would seem logical to me to be at 1049.5 if this is just a one box reversal, but it seems that in practice that it is really at 1049.0 (which seems like a 2-box reversal?)

    Can someone clarify/explain this for me?

    #21     Nov 2, 2003
  2. Haven't look at P&F for a long time, but maybe it's because that when price hits a high of 1050, that's a box starting at 1049.50 (using box size of 0.50) - the box from 1050-1050.50 might not be drawn unless price actually exceeded 1050.

    If so, then you'd need probably need a drop to 1049 to trigger a 1 box reversal.
    #22     Nov 2, 2003
  3. some schmuck prints an article in s&c describing how he easily makes 30 points a day with p&f on 1min chart. and this is what happens. :eek:
    #23     Nov 3, 2003