HG, would you eventually talk a bit about how you trade on an intraday basis, like in the ES, or YM? I am curious how you set your charts and what you think are the best signals. Thanks again for this thread.
HolyGrail, back in 88 a close friend was using P&F to trade the S&P and he learned it from a friend of his who was a successful floor trader. At that time it was the way floor traders traded, and it sure worked then and it always will.
Yes, I will be posting charts of the es. Just not in real time unless we have such a slow day on Monday both in my office, and in the market. Those slow crappy days are going to come back someday. I've had a number of people tell me that pnf charts were used by floor traders. That may or may not be good lol, but I think it is good. As I said early in this thread. I truly beleive once you learn price action you never have to worry about your system becoming obsolete. I guess if pnf became too popular there could be groups fading the signals, but I am not not too concerned about that. And just like any other systems there are certain types of days where you could be buying the high and selling the low all day long. I will return later this evening.
My thanks again to yuo for this thread, as well as all yuor patience and help! I'll keep following the thread and continue to learn!
I'd also mentioned to HG that when I was on the floor a couple of guys in the pit used PnF charts to trade. They'd have graph paper and draw their own as the day progressed. They weren't scalpers, but would trade several times daily at what they considered key points or events. There was also this old guy, close to 80, who sat in the office of the clearing firm I was with, who'd watch the screen - price changes only, no charts - and construct his own charts by hand. He'd end up with these pieces of graph paper taped together to give him 3, 4, or more feet of chart!
trader56, yip, drawing X's and O's on the back of fag packets and transferring them to graph paper at the EOD. The most unintensive type of trading I've seen. Box size allows you to be as active as you want.
Good job Holy...I look forward to reading more juicy stuff...thank you for sharing and taking the time to post your thoughts....
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.