great start - also very interested, started using p&f a few weeks ago and am still learning. Have had great success with intraday trades so far and using the charts to determine s&r. Will post my charts soon.
Recently there was a post on Elite trader that now was a good time to buy AMD. I disagreed, and any person using pnf charts would also. Does that mean we have not bottomed in this stock? Not necessarily, but to me it is just not worth the risk. Take a look at this chart. We have 4 levels of down trends. No x column has exceeded the previous x column since July of 2007. No downtrend line has been broken. The bottom line is it is too early to catch this falling kinife.
There are four signals I really like to trade, but sometimes the signals do not appear on my main chart of .75, but they do appear on one of the other charts. If they appear on the 1.0 chart I know I have to adjust my my target and stops higher. If they appear on the .5 chart I tighten my stops and target. Many times you will first see a pattern on the .5 and it is repeated on the .75 and finally the 1.0. I normally don't trade double bottom sell signals, but if I see a triple bottom on the .5, a double bottom on the .75 and a column of 0's on the 1.0 then I am shorting.
When he says 1.00, 0.75 and 0.50 he is referring to the box size of the Pnf chart. All charts have 3 box reversal (unless using another technique).
so .5, .75 and 1.0 is the timeframe? I agree on the double bottom sell. The odds are very great for a short term retrace on dbl bottom/top
First I want to show you that it is important to take trades that have a decent risk reward. Here is a current chart of aes. Would I have sold at the triple bottom sell signal? No I would not. Why? Because I might still be right but it could take me over 8 boxes before I knew I was wrong and there is support only 4 boxes away.