Learning to read Price Action with P&F Charting

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

  1. goog 5$ box size.1 box reversal.horizontal counts.price in a triangle.could break either way
     
    #161     Mar 24, 2008
  2. The trade was just a scalp for two points and it worked. All charts again were in agreement so I just waited for the .5 to trigger.
     
    #162     Mar 24, 2008
  3. I also just got into JCG at 45.67
     
    #163     Mar 24, 2008
  4. No I would not. Based on my experience it needs to surpass by only box or be equal to the last column to get the best trade.

    Welcome to the thread, and it is nice to see a fellow P&F trader. I knew there had to be some of you out there.:D
     
    #164     Mar 24, 2008
  5. I've done several searches over the past year to see what people have discussed about P&F charts, but found very little.

    To further complicate my question to you :) , since you use 3 charts for ES scalps, 1 box DT reversal short entry on the 1.0, would be a 2 box DT entry reversal on the .5. Would you therefore, not take 1 box DT reversal short entries on the 1.0 x 3 chart, since it would be a 2 box on the 0.5 x 3?

    I've never looked at reversal entries like this but they make a lot of sense. In general, it seems the most profitable entries occur when the most stops are being taken out to feed the direction of your trade. Your DT reversal method seems to fit exactly into this paradigm!
     
    #165     Mar 24, 2008
  6. Just got back to the tread, HG.

    A quick question:
    Is this the Double Bottom failure at 34.00 or the most recent at 40.00?

    Assumming the two points I'm looking at are, in fact, the double bottoms.

    Thanks again!
     
    #166     Mar 24, 2008
  7. It is the reversal from the 40 dollar area. We don't know it is a failure though until it gets to 45.
     
    #167     Mar 24, 2008

  8. Basically on these scalps I look for trades where it will take 1 box FROM ALL THREE CHARTS to go into a sell or buy signal. It is actually possible for a sell signal to appear on a 1.0 before it appears on a .5.

    I look at all three and determine which one will go into a sell signal first. If it is the 1.0 I completely manage the trade based on the 1.0 chart. That means a 4.0 point stop, and my target will be totally based on the 1.0 chart.

    edit:
    You don't have to set your stops based on the 1.0 chart unless you are fairly certain your target has at least a 1 to 1 relationship to your risk.

    I don't like these scalps even though I made money on all three today. They are just not as good as the other signals, and the targets almost always have to be fixed. When I trade them I only trade 1 contract.
     
    #168     Mar 24, 2008
  9. HG

    Thank you so much for your time and willingness to share what you've learned!
     
    #169     Mar 24, 2008
  10. sharp10

    sharp10

    Thanks HG. Much appreciated.
     
    #170     Mar 24, 2008