Learning to read Price Action with P&F Charting

to be honset, I wasn't looking, but I should have been. I'm only part way thru the nasdaq, so I'll strt looking.

 

chart
(a day isn't complete until you learn at least one new thing) --adding attachments

 

Sorry for the late response , I just got back to town. When I trade ES and NQ I do use a 3 box reversal with the .5, .75, and 1.0 charts.

On ym I use 4, 6, and 8 point charts.

 

Haha, yep
I'm really curious to see how this works out for other declining stocks, I hope we don't get caught in those unfortunate BSC-type situations

 

I noticed a lot of clear bearish triangles and double bottom breakouts in the big losers while I was browsing today.

yayt. for some reason most of my post (with the chart) never got entered, but what you show on your chart is exactly what i said, ( I would have bought at 87 and got stopped out at 80. but don't know enough yet to have put in the sell at 79.) I might have done it at 74 and 55 tho

the comment about learning to add charts was directed at me, not you.

 

pnf ,what do u think of aig?

 

Regarding AIG, I would maintain in my own vocabulary a daily short bias from the 49.00 price level. This term daily caused confusion on this thread so it could also be called a short-term short bias.

My plan of action would be
1. I would initiate a short bias when price hit the 49.00 price level a while back.
2.I would day trade this stock on the short side.
3. I would terminate my short bias when price touches 37.00.
4. Or I would terminate my short bias if 52.00 is touched before 37.00

 

pnf.guy
since most of my charts show a short bias starting at $44, would you still use the same charts and bias if you were longer term trading?
(I know you wouldn't use the same chart, but would you come up with the same signals)

thanks

 

thnks pnf

 

Hey FlyingLead, if it helps, I would have gotten short as soon as it went under 44.

Anyway, I'm going to start work on backtesting PnF signals on Wednesday, I should hopefully have something done by Wednesday night.

I'm planning on testing just the simple signals: double, triple, quadruple top breakout/breakdown, and de/ascending triple/quadruple top breakout/breakdowns.

I can already think of possible improvements to the raw signals we have above, such as investing more on a quadruple top (assuming it's a stronger move against stronger resistance) as opposed to a double top.