Thanks dentist007. Given your reply and not just regarding forex, but any market, would it help to find the Average True Range of the time frame and use that as a GUIDE to selecting box size? Or is that flawed in it's approach?
u might want to try 1 box reversal charts.you can take some good horizontal counts from intraday data
ialwayslearn: why are you bothering with atr.this really has nothing to do with p/f.it is a calculated line u must look at the colun lengths.long columns make the chart unreadable.check out the book.it is a free preveiw on google
HG - What are your thoughts on range bars? I have heard that they are similar to P&F charts, some say they are an extension thereon. Thoughts?
Well I am done for the day. We had two fake triangle breakouts that turned a very good day into an ok day. Then I had a great trade that turned it back into a good day, and my last trade of the day gave back some of my winnings. Still a decent day, but should have been better.
I have no thoughts on range bars. I like the method I am trading, and there is no way I would ever consider changing methods unless I have a 7 or 8 month losing streak.
Dentist007 You had said that you need to choose a box size that captures the VOLATILITY of the instrument. I was thinking that using ATR, H-L, etc. might be a more objective way of determing box size for a given market rather than saying a column is "too high" or "too low". I get the concept of what you are saying. I am not looking to re-invent the wheel. This has been a great thread so far and I was just throwing out some ideas to consider based on what you said about volatility.
ialwayslearn: first consider what reversal u want ot use. 3box give good vertical counts and also good horizontal counts from a hi or lo .main ones 1 box give good horizontal counts.no verticals to do good analysis u need to look at both vertical counts do not work well on 2,4 and 5 box counts next consider youre time horizon.longer /med then daily data either close only or hi/lo plot.best to choose close to start with. then by starting at a high box size u go down box sizes to expose the volatility and then look for trading signals 45 degree trendlines are the strongest on 3 box reversal charts p/f charts allow you to extract the most information about the instrument than any other charting method