Learning to read Price Action with P&F Charting

Not related to P&F WARNING!! WARNING!!!!

I don't know if you guys are aware of the Put/Call trade but its working tonite.

Put/Call ratio above 1.05 and closing trin one or higher means overnite prices higher. Its a YM trade, go long at five minutes before the close or exactly at close, 60 point stop and close out longs on the open. I usually put in a 100 point sell stop. Oh it is only for down days.

 

You could have a set t/p (at like 1.5-2 times risk?) for half. Once that's hit, move your stop loss to break even on the other half (so your entry), and either trail it like you do, or grab another 2-3 points).

 

I would like to ask two questions. Any replies much appreciated

(1) I want to swing trade ES. Can it be done? What settings are recommended?


(2) Can you be in some trade all the time? Say at the start of x column ,you go long and at the start of 0 column you reverse the trade and go short. Box size and reversal settings can be adjusted. Some descrition can be used as well depending on the experience of the trader. There could be small losses and small profits but sometimes you will catch a big move. Could this be done with any Index and for day trading or swing trading.

HG has said that if you take all the trades you are bound to lose money. But I am still asking can this be done with adjustments to box sizes and with some descrition.?

Again replies much appreciated. Thanks

 

I think I probably need to do that. I have always had a mental block about arbitrary stops and targets though. I like to look at support and resistance, trendline if I am in a counter trend etc.

I'm always willing to try something though.

Yesterday I entered a perfect setup and noticed we were coming up to a pretty strong resistance area. The resistance was 1 point lower than my initial target and so I lowered the target. Of course the market blew through the resistance as if it wasn't even there.

 

If I were to trade ES from a swing trade point of view, I would set up my standard chart of 20 points per box. I would probably add a 10 point chart and a 30 point chart.

In terms of your second point yes you can, and I do at times. I don't always buy on the breakout. If I am confident in the overal trend, or say, I know if we reverse at a certain point we will be bouncing off a trendline, then yes, I anticipate the move and place my order before it happens.

edit: If you take all signals you are not only bound to lose money, YOU WILL LOSE MONEY, and that is even assuming you take all trades and sell them at their best point, and all of your losses are at their lowest point.

 

I totally missed your point on this. Yes you can do this, but how in the world would you know when to get out of the opposite trade?

 

Thanks HG

Your reply much appreciated.

I would reverse the position say from buy to sell immediately X row ends and 0 row starts. and vice versa all the time and always in the trade. I donot know what box size or reversal size but if I am doing too many trades I will adjust so I do fewer trades. Papertrading initially ofcourse. Thoughts and suggestions most welcome.

 

You'll get killed in chop. Go ahead and try it if you want, but I highly doubt it would work.

 

Thanks for your comment.

I doubt as well that this will not work. It is so easy and mechanical. If it was profitable everybody would be doing.

I donot know but one could have a target of one or two points and grab and run and than wait for another row to start. repeat and rinse. Most of the time rows of X or 0 are not very short. You can probably get one or two points.

What will be your opinion about this style? Thoughts appreciated.

Thanks

 

I found this thread last night and have read through all the posts. While being aware of PnF charting, I have not used it in the past. But I decided I would give it a try this morning and see if it was helpful.

In the intraday ES, I like the concept of using the different range sizes. This is similar to trading using different timeframes in that it is usually smart to trade in the direction of the longer time frames and in the case of PnF it is a good idea to trade the ES in the direction of the 1.0.

Keeping that in mind, I saw a great trade this morning. At approximately 10:23 ET, the 1.0 PnF went bearish, in that the O's went below the prior column of O's. This put the .5, .75 and the 1.0 in the bearish camp. Within a few minutes, the .5 reversed back to bullish, but the .75 and 1.0 remained bearish. At this point, I figured that when the .5 would reverse back to bearish, it would be a sell. That happened a few minutes later, so the there was a sell at about 1332 (approx 10:38 ET) and within a few minutes, the ES was down near 1328. Anyone else see that?

I like the idea of waiting for .5, .75 and 1.0 to go the same direction , allow for a .5 and maybe a .75 countertrend move and then go with the trend when the .5 and/ .75 get back in synch with the 1.0.