Learning to read Price Action with P&F Charting

My last statement wasn't very clear. What I am basically saying is that if the bearish signal reversed does not materialize, I would still take ANY other signal to go long on this stock because it is above its trend line and the overall chart remains bullish. We would not enter this stock until a current x column exceeds a previous x column.

 

If you notice prior to these seven columns we did have my strongest pnf pattern. A failed double bottom breakout. After that failed breakout the stock moved up 12 dollars before there was a reversal. We would have had the potential to get 8 of those dollars.

 

in your opinion what is better to use the closing price or the high/low option?

thanks, awesome thread learned so much so far, thankyou so much

 

The charts I am showing you are based on close. I prefer to use high/low data. Just knowing the stock hit the price that would give it a new x or 0 is good enough for me.

Great question by the way.

 

OK, going to bed right now. It's been a long day. If you trade nothing but failed double bottoms or failed double tops I PROMISE YOU THAT YOU WILL BE PROFITABLE.

 

Good job man, good job.


Nah .... make that a really good job!

 

Thanks Jimmy that is much appreciated.

I forgot to mention one thing on the costco double bottom failure.

We were in no man's land on the price. We were at new highs so I would have probably had a 3 point trailing stop on it which would have only yielded 4 or 5 dollars.

 

Well before I go to bed we can do a live trade for tomorrow.

J Crew. Symbol JCG

this stock is currently in a reversal off of a double bottom failure. this stock doesn't have much movement so I don't know how long it will take to move up, but it is a buy at 45.00

Good night and good trading.

 

Great info HG! Thanks for your time and effort.

 

Thanks HG for a great thread. Your good karma will be rewarded.

I am trying to become a day trader (paper trading at the moment. I am trying NQ. Z and ESTX50. I get very tired siting at the computer for long hours.When I am not there I always miss a great trade. So I want to have one or two trades a day. It seems this might be possible with P & F charts. Your advise and comments much welcome.

Thanks. Comments from anybody else is welcome as well. I use IB and QT . QT has p&f charting facility.

All replies much appreciated.