Learning to read Price Action with P&F Charting

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

  1. woonaruto

    woonaruto

    Thank you HG

    have learned a lot about PnF trading

    :) :D
     
    #1311     Jan 3, 2009
  2. agreed
    thanks hg
    happy new year to you and youre family
     
    #1312     Jan 6, 2009
  3. a variation of holygrail"s shakeout chart formation.marc rivalland the p/f chartist gives up to 3 box tolerance when there is a false signal in a trend
    [​IMG]
     
    #1313     Jan 21, 2009
  4. posting a chart of the eurjpy cross.
    according to robin griffiths a market strategist.markets will look at this fx cross.currently it is at a low/euro
    all to do with the carry trade
    so he says
    [​IMG]
     
    #1314     Jan 21, 2009
  5. rtr1129

    rtr1129

    I have been reading this journal from the beginning, and it's great, but the one thing I have not felt confident about at any point is trendlines.

    In many of the posted charts, I see numerous places where a trendline should be drawn according to HolyGrail's description of how to draw a trendline, but a trendline is not drawn.

    Example: http://www.elitetrader.com/vb/attachment.php?s=&postid=1849155

    Around the 11.00 price level, near the center of the chart where the 8,9 is, it looks like there should be a trendline, but no trendline was drawn.

    There are many other charts like this that have been posted. I basically just want to feel confident when drawing a trendline on PnF charts, but I feel like I'm missing something.

    Is it really as simple as an X going higher than the previous X, and an O going lower than the previous O? In the posted charts, did people just leave off trendlines that were unimportant to the point they were making, or did they not draw the trendlines because a trendline shouldn't have been drawn?
     
    #1315     Feb 7, 2009
  6. CWU

    CWU

    If you follow this trendline algorithm you’ll do just fine. I didn’t invent it but it’s in my own words. Master this, and then you can add the secondary types of trendlines.

    1. Let's call the Bullish Support Line the BLSL, and the Bearish Resistance Line the BRRL.

    2. Begin by always going to the hard left edge of your data (where the chart begins). What is the first signal that forms? If it's a buy signal (double top) then we are going to go to the bottom of the lowest column of O's to the left of that signal, and start a BLSL. If the first signal is a sell (double bottom), then go to the top of the highest column of X's to the left of that signal, and start a BRRL.

    3. From that point on (either the first BLSL or BRRL) there will always be a trend line in place. The trend will either be positive (trading above the BLSL) or negative (trading below the BRRL).

    4. When a BLSL ends, a BRRL begins. When a BRRL ends, a BLSL begins.

    5. A BLSL can only end when a column of O’s penetrates it, and it's on a sell signal. Penetration means the column of O's not only landed on the BLSL, but went at least one or more boxes below it.

    6. A BRRL can only end when a column of X’s penetrates it, and it's on a buy signal. Penetration means the column of X's not only landed on the BRRL, but went at least one or more boxes above it.

    7. If a BLSL is the active line, and a column of O's come down and stops directly on the BLSL, and then reverses back up, then drop the BLSL down one box so it's directly under this most recent column of O's, and that is where it will continue from.

    8. If a BRRL is the active line, and a column of X's rises up and stops directly on the BRRL, and then reverses back down, then raise the BRRL up one box so it's directly over this most recent column of X's and that is where it will continue from.




     
    #1316     Feb 8, 2009
  7. the difference between the holygrail and cwu method of a trendline breach
    cwu.is looking for a double-top in a downtrend at or near/within 1 box of the downtrend line
    vice versa for a breach of of an uptrend line
    whereas holygrail
    in ann uptrend he looks for the retrace below the trendline to see if it stays below
    vice versa etc etc
    please correct me if you think my interpretation is wrong
     
    #1317     Feb 8, 2009
  8. nas 100 setting up for a double-top after a shakeout.if this fails ,then a nice breakdown
    [​IMG]
     
    #1318     Feb 8, 2009
  9. euro going to get a hammered
    just broken the 8850 support

    [​IMG]
     
    #1319     Feb 8, 2009
  10. our english pound is certainly making a recovery.an unactivated vertical count of 1.7200
    i might even be able to afford a vacation this year...!!

    [​IMG]
     
    #1320     Feb 8, 2009