Learning to read Price Action with P&F Charting

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

  1. yayt
    excellent stuff.keep up the good work
    you are trading a catapult.ie a breakout.pullback into the pattern.no reversal signal given.then breakout again in the direction of youre trade.a catapult is usually a 1-3 box breakout from a triple-top.otherwise,if it is a double-top then b/o is classified a triple-top.
    anyway,who cares what the classification of the pattern is ,so long as it is making you money
    here is the mon chart yayt posted

    [​IMG]
     
    #1171     Sep 13, 2008
  2. yayt

    yayt

    There seemed to be a lot of signals fired off today from the strategy I've been implementing but I was honestly too scared of the volatility today, don't know if that makes me smart or stupid, hah.

    How did you guys do?

    On a side note, Flyinglead, your COV pick has done pretty well (and really weathered the storm today!)
     
    #1172     Sep 15, 2008
  3. yayt

    yayt

    Thanks for the kind words dentist.
    Although, to be clear, that 2nd arrow was just one example, I also went long at the first arrow. I don't think I am pursuing a catapult strategy, but more of a pull back post breakout to a previous O column.

    In the attached, the price broke down below the previous O column, then retraced back up and continued on its descent. I would have gone long as soon as it reversed (.20 box size, 1 box reversal)

    If you don't mind sharing, what do you think of this strategy and also, what strategies do you use? I won't be offended if you don't want to divulge :)
     
    #1173     Sep 15, 2008
  4. thanks
    I'd like to say a majority of my picks have been that good, but lately I haven't been doing that great. I've got to get a good handle on Holygrails reversal indicator.

    A side note, a couple of my accounts are on their way to TOS and I'm gonna start doing it for real as soon as the transfers are completed.
     
    #1174     Sep 15, 2008
  5. After spending the last 4-5 months studying and papertrading the PnF charts, I think the real money is in a combination of PnF, and Fundamentals. Altho there are lots of good signals for breakouts, many act just the opposite to what the market is doing. ( a triple bottom breakout may go the opposite way on a down day) etc.
    Checking the RSI and and BS% help, but sometimes it just seems like knowing what's going on in the market is a better indicator. Not only to find good buys, but to keep one away from bad buys.
    Many of my stock picks were a wash. (probably because of my lack of good market study skills) but overall, they never hurt me.

    A few stocks that were on my "watch list" thruout the last couple months that had potential for great profits or to keep one from making big losses were the following:

    FNM @26
    FRE @20
    AIG @42
    LEH @34

    and a lot of the energy stocks when oil started to drop


    Whether I will be able to follow thru on those type of trades when my TOS account gets funded will be the real test.

    (and yes , I did have lots of bad picks too)
    So I'm not touting my ability,(because I don't have any record yet) but just some observations
     
    #1175     Sep 16, 2008
  6. yayt

    yayt

    I assume you would have gone short those stocks?

    Yeah, having a good fundamental base for taking action on a technical system seems to be a good way of doing things.

    As it is, I think I would much prefer day trading using PnF, with the intent of automating it in the near future.
     
    #1176     Sep 16, 2008
  7. a classic text book chart pattern.bearish signal reversed

    [​IMG]
     
    #1177     Sep 16, 2008
  8. Has anybody been watching JNJ. Been sneaking up for a long time, and today I hear they are buying back a lot of their stock and Buffet has been large amounts of it. So my question, is it being propped up and the main reason it is up in a down market? Is Buffet buying just to keep his money in an equity that isn't tanking? The stock seems to be kinda sluggish right now but at least it hasn't tanked like some of the stocks.but what happens when the bear market ends and they start to sell off?
     
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    #1178     Sep 16, 2008
  9. yayt

    yayt

    Hey,
    For JNJ, I feel like it is fairly safe and it seems like it will indeed go up, but probably at this point, after having gone down so much, the momo stocks would probably vastly outperform, but of course they are also riskier.
     
    #1179     Sep 16, 2008
  10. perfect reversal pattern
     
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    #1180     Sep 17, 2008