Learning to read Price Action with P&F Charting

count me too!, you have finally allowed me to discover a method where i am not constantly saying to myself "huh?" or "i wonder what next", love it hope to learn it more in depth over the coming time.

agree with sharp the GOOG move today was nice, i noticed the initial buy yesterday actually.

 

The question is, what kind of STOP would you need?

 

was the target strictly based on price resistance?

 

well if you did the "one below last o" column strategy HG mentioned then 416 would be your initial stop and then i guess as it moves up you would trail up always 4 boxes behind?

for a 400$ stock like goog i am using 4boxsize/3rev

ohh and as a target are we looking at the high of the last x column in that case 530?

 

so according to the current daily p&f, the SPY and the DIA still have not broken the down trend?

 

I hope some of you trading es caught the nice failed double top on the .5. It then created a double bottom on the .75 and 1.0. The .5 is the chart on the left.

Me like a jerk had his button trader set for a scalp instead of a normal target and got stopped out after 3/4 points. Yes, it's true, I do make mistakes.

 

Remember if you are trading Google based on daily charts for swing trades you need to use a 10 point box size above 500 and a 5 point boxsize below 500 so it gets complicated. This is also why I use bulls eye trader become it does this for you automatically.

What I would do is look at the straight downtrend. Take .4 times the number of boxes in the downtrend and assume google will reach that for a retracement level.

We had a 20 box downtrend. 20 * .4 is 8 boxes. 20 * .5 is 10 boxes if we have a 50% retracement. Based on that we have already hit our target and I would be out of the stock. It is still in a downtrend. Now if we have a pullback and then a new double top buy signal I would consider buying it again.

 

Terrific thread HG. I started following P&F charts on ER2 last summer, using entry on retracement to a moving average.

Regarding the failed DT on the .5, will you still take the short, if the DT is broken by more than one X? In this case, if price had gone to 1360.5 or more, instead of just to 1360.0, would you have still taken the short at 1357.5?

Thank you.

 

goog.1 box reversal with horizontal counts and trendlines.$10 box size.you can quite clearly see the action.there is a cluster at 470-480

 

On es right now I am sitting on a buy at 1354.25 and a sell at 1350.75.