Learning to read Price Action with P&F Charting

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

  1. sharp10

    sharp10

    HG, Thanks very much for the Thread.
    Since I have never used P&F charts before, what are the settings to plot on a daily chart. And can they be used for shorter time frames?

    Thanks again.
     
    #31     Mar 22, 2008
  2. I forgot to mention what the numbers in the columns represent in the charts. It just represents the month. You have 1-9 which represent January thru September, and you have a b c which is October, November, and December.
     
    #32     Mar 22, 2008
  3. atonix

    atonix

    This is all very interesting. I've never taken the time to learn P&F, but I think I will now. Thanks.
     
    #33     Mar 22, 2008
  4. Time is of no consequence on a pnf chart. A daily chart looks exactly the same as a monthly chart. The only difference is box sizes that you choose to use. If you use the standard box sizes a monthly chart will look the same as a daily chart.

    You should not use the standard box size for intraday trading.

    For example on ES the standard is a 20 point box. This is fine for daily or weekly trading but not for intraday.

    On intraday, I actually use three chart box sizes. .5, .75, and 1.0
     
    #34     Mar 22, 2008
  5. What are your average holding times for each position? Looks like they can be held for weeks if the movement is small.
     
    #35     Mar 22, 2008
  6. sharp10

    sharp10

    Thanks HG, I guess I better start from the basics.
    Look forward to your posts.
     
    #36     Mar 22, 2008
  7. Typically I hold the stock until target or 5 weeks whichever comes first.

    Intraday trades very rarely last more than 10 minutes.
     
    #37     Mar 22, 2008
  8. A word of caution. Taking every P&F buy or sell signal will absolutely guarantee your failure. You have to trade signals with high probabilities. We will get into that as well.
     
    #38     Mar 22, 2008
  9. WOW - a very civil and yet educational thread at ET, there is hope here after all!!! :eek:

    LOL!!! :D

    HG - thanks for the BSC chart. :)
     
    #39     Mar 22, 2008
  10. Don't count on it. They are just waiting in the wings.:D
     
    #40     Mar 22, 2008