Learning to read Price Action with P&F Charting

nas 100 has definitely been outperforming the dow recently
cahrt is nas 100 relative to the dow.since jan 07.been outperforming by a few percentage points recently
dow ,s&p500 been sluggish recently
please let me know if you disagree

 

Okay, I gave it a try. See attached chart. I included the double top/bottoms and connected them to the trendlines. Let me know if that's correct, incorrect, or just overkill

 

You should start you first down trend line at 17.5

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What is the symbol of the stock you are charting? I'll post a correct chart with just the BLSL and BRRL.

 

I believe it's AMD, from about 1 year ago. It was a chart that HolyGrail posted toward the beginning of this journal. But any example you are willing to provide would be much appreciated.

 

Okay, here's AMD with just the BLSL's and BRRL's. You can see that one of them is always in place.

A P&F chart is either bullish (on a buy signal) or bearish (on a sell signal) and the trend is either positive (trading above the BLSL) or negative (trading below the BRRL).

Now you pick a chart and put them in place.

 

Same chart but I've added a few secondary TL's like the Bullish Resistance Lines and Bearish Support Lines. The strongest ones are always the first or second ones of the bottom or a top. They do capture channels very well.

 

Okay, I think I'm getting it now (or getting closer). Here's a chart of AMZN.

 

First, you looked at the stockcharts P&F chart and that’s a good thing because I provided their code pounder with the exact algorithm I posted here. (This was some 5 or 6 years ago.)

I see that you added 4 superfluous secondary BLSL – but for what reason?

First, master the Bullish Support Lines and Bearish Resistance Lines. Then, the Bullish Resistance Lines and Bearish Support Lines. Then, short term lines

Take any chart in Bullseye, remove all the trendlines, go to the hard left and start drawing in the trendlines. Simply follow the algorithm. Post that.

 

Here's one for AES. I wasn't sure about the green lines. Should they not be drawn because they are not the primary trend? Would it be accurate to say that you want the minimum number of trend lines so that there is at least one trendline covering every column?