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: X XO XO XO 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? Thanks,
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.
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: