Learning to read Price Action with P&F Charting

I agree. Very civilized.

 

I've always liked P&F as well as MP because of their ability to clearly illustrate fresh breakout and value areas.

P&F is 'old as the hills' - many floor traders in the '60's and '70's used to pencil in P&F sheets standing in the pits. As late as the early '90's you could still see the older guys with P&F sheets stuffed into their trading jacket pockets.

In terms of 'reading' actual price action other than an initial breakout or run to a fresh value area, there are certainly better tools than P&F IMHO.

 

Bone - what other things were you referring to above? thx

 

eurodollar..eurusd
a bearish signal reversed.this pattern looks to be forming

 

30 year treaury now offering an attractive yield

 

nas 100 setting up a bull trap.i think
eod data.10 point box size by 1 reversal
just my thoughts.not a trading recommendation

 

Would you please explain where and what would make a bull trap here. Thanks

 

The Chart Formations
The Bull Trap and Bear Trap

Michael Burke attributes this formation to the huge popularity of triple tops. Effectively, the chartist is paying the penalty for his buying point being known well in advance. The share price breaches a triple top by one box but there is no follow-through buying. The share price advances no further. Indeed, sellers, who may have been waiting on the sidelines for the chart-based buying to come in, start driving down prices. It is a bull trap. The share then executes a 3 box reversal. The assumed disequilbrium was an illusion.

It is important to note that Michael Burke regards it as a sell signal once the 3 box reversal is executed because there will be a number of bulls trapped who will be forced to liquidate. So it is not simply a failed triple top, but actually a sell signal as well. Fig 1 shows the bull trap. Fig 2 shows the bear trap.

 

chart to show what a trap is
text and chart from marcrivalland.com


he also says he does not like trading this formation

 

hope this explains it.if you look at marcrivalland.com.go to point and figure library.there are other chart formations.basically saying that the double-top is too unreliable.mainly trades variations of triple-tops and shakeouts
iam also using quotetracker.the p/f charting is great
1.intraday tick charts.these are really good for scalping purposes
2.historical charts in p/f.jerry medved has told me that these are calculated for hilo and cannot be displayed for close price.that is not a problem.these are excellent
3.dont use 1 box reversal.these are not wyckoff/one step back method.so the congestion areas are very wide.however,still look at them if needed
bullseye/archer analysis has closed for new business.quotetracker and stockcharts are ideal replacements