Learning to read Price Action with P&F Charting

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

  1. zanjani1

    zanjani1

    #671     May 9, 2008
  2. hayman

    hayman

    Holy Grail,

    My 1st post on this thread......I have been following it for a while, and have purchased 2 books on the subject (Dorsey - the book is good, but he tries to promote his services too much, and (Du Plessis - this is a great book !).

    In any event, I have a quick question for you. When you trade ES using P&F, I see that you use 0.5, 0.75, and 1.0 box size. For the purposes of day-trading or scalping ES, are you using a 3-box reversal for each of the 3 box sizes ??

    Hence, for this instrument, are you just trading based on these 3 screens (0.5 x 3, 0.75 x 3, and 1.0 x 3) OR are you using different variants of the reversal size as well ?

    Also, if you trade YM intraday, what P&F parameters would you recommend for that ?

    Many thanks in advance, and thanks for putting so much detail into this thread.

    Best Regards
     
    #672     May 9, 2008
  3. subq

    subq

    I wasn't trying to discourage you from back testing it. I would be interested to see your results. :)
     
    #673     May 9, 2008
  4. subq

    subq

    both are excellent and I am a member of investorsintelligence, however, you have to subscribe to them, stockcharts can be free if you don't need the paid features
     
    #674     May 9, 2008
  5. subq

    subq

    hayman,

    I can't speak for holygrail but I day trade with P&F charts and it looks like he is doing something similar to what I do (using different time frames).

    So if you were asking me...then I would answer yes, you have all the charts up at the same time and you are watching all of them, the different box sizes give you different time horizons and filter out noise differently. I mostly use a reversal of 3 on my charts.
     
    #675     May 9, 2008
  6. yayt

    yayt

    #676     May 9, 2008
  7. byzantium

    byzantium

    Hello johnpinochet,

    The most common box sizes that I trade are:

    HSI: 10
    For HSI it varies between 8 and 15 to characterize the price behavior, but I almost always feel more comfortable at 10 for trading.

    SPI: 2 or 3
    I prefer 2, which offers more trade opportunities, but 3 offers cleaner signals. You can only trade 3 on volatile nights.

    STW: .2
    Not my favorite index to trade. It doesn't trend as long as the SPI (but it doesn't have as many false breakouts either). It also doesn't have the noise of the HSI that makes it so easy to get in and out of a position. It does often have one or two big moves each night. .2 let's me scalp a bit, and get in on the significant moves.
     
    #677     May 9, 2008
  8. byzantium,

    Thanks for the info. I've been looking into the Asian markets for years. I just haven't gotten around to setting up charts and studying them in great detail.
     
    #678     May 10, 2008
  9. pnf.guy

    pnf.guy

    If any one tracks this market I would really like to hear your comments or even better please post up a chart with a few annotations.
     
    #679     May 10, 2008
  10. pnf.guy

    pnf.guy

    crude oil pp
     
    #680     May 10, 2008