Learning to read Price Action with P&F Charting

Discussion in 'Strategy Building' started by HolyGrail, Mar 22, 2008.

  1. intraday s&p 500
    5 min close data.box size 3points.3 box reversal.ie 9 points neede to make the columns reverse.
    included are trendline.vertical counts and risk/rewrd ratios for each vertical count
    a consolidation pattern.nothing excititing to see just yet

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    #1161     Sep 4, 2008
  2. found an interesting chart on another website
    nyse daily candlestick with a bullish percent chart superimposed for the nyse.there is a positve divergence here.ie nyse going down and bp% going up
    anybody got any input on this one.?

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    #1162     Sep 4, 2008
  3. subq

    subq



    You want to look at the total bullish% as well, not just the direction.
     
    #1163     Sep 5, 2008
  4. dow jones index.
    40 point box size with a 3 box reversal.hilo data config.a 45 degree downtrend line with vertical counts
    on the lower chart is the macd calculated from the middle of the columns.not the close as in candle/bar charting.the setiing is 8/15,smoothing ema is 9
    we can see that there is a regular peak divergence between the oscillator and price.a very strong signal providing support holds

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    #1164     Sep 6, 2008
  5. ignore the above message.
    no divergence is present.the oscillator did not achieve a higher low in the downtrend
     
    #1165     Sep 6, 2008
  6. S&P 500
    4 points box size.3 box reversal.hilo data.a 45 degree downtrendlinea macd set on 5/12/9.there is a sequential divergence betwen price and oscillator.however,sequential signal is not as strong as immediate divergence.there is a cluster of counts at approx 1200.if the macd reverses then there will be immediate divergence/a stronger signal

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    #1166     Sep 6, 2008
  7. gbpusd/cable
    latest downside vertical count has been hit

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    #1167     Sep 9, 2008
  8. an interesting chart of the s&p 500.i have put on a 1 box reversal chart.this is long term.
    a 5% box size.ie each box is 60 points.1 box reversal ie 60 points and the columns reverse.
    observations:
    price is in a downtrend,the last signal was a double-bottom at 1370 area.the 45 degree downtrend line has kept in the recent price action.however,notice the support area at 1240/this weeks price range.this is looking to be very important.
    notice the step action of the downtrend with the recoil.the horizontal count is approx 1030.bear in mind that this is longer term.at the bottom is the years for this chart

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    #1168     Sep 11, 2008
  9. yayt

    yayt

    Hey dentist,
    thanks for keeping the thread alive, interesting charts.
    So I've began my foray into day trading with P&F using QuoteTracker to create the charts (let the UpData trial lapse)

    Basically I look for a breakout and then a pullback, and buy once the trend resumes again (assuming it pulls back all the way to the previous close of the O column - perhaps I should not restrict it to that?)

    Also make sure it is in a solid up/down trend.

    So, trading 100 shares of stock at a time, of an admittedly randomly selected group of stocks has led me to have the following results:

    Wednesday: +108
    Thursday: +137
    Friday: +187

    I seem to be getting better?

    I will post some charts when I get a chance tomorrow
     
    #1169     Sep 12, 2008
  10. yayt

    yayt

    Okay, here is an example.

    What I noticed when I first started looking into P&F was that, after a breakout, there was usually a pullback. I hated seeing those drawdowns. So why not buy at the pullback?

    So I look for situations where the price breaks out, falls back to the previous O column, and then reverses 1 box (to confirm resuming of the trend).

    Thoughts? Am I getting lucky pursuing a ridiculous strategy?
     
    #1170     Sep 12, 2008