what chart size are you using? I've been mostly using 3 box Reversal with High-Low. but checking that against the 2 box reversal and the 3 box close sometimes gives quite different indications. throw in a couple different box sizes, and my mind goes rummy. (I'm back to rereading this whole thread and continuing in Jeremy's book)
HG Rereading the whole thread. You nailed that one. (Daily close gave lots better signal than high low)
Thanks, Holy Grail, I appreciate it !! So for ES, with a 3-box reversal, that really doesn't allow for too many scalp trades using PnF, does it ? For example, it is now 2:15 PM EST, and since this morning, there have only been between 7 and 11 column changes with 0.5 chart and 0.75 chart, respectively. [To clarify: I am using QuoteTracker with IB tick data. But with QT, you have to specify a chart period, for a given chart, as well as box size and reversal. So, I have been using 50 bars. It will use the Hi/Low from each 50 ticks then, in making reversal determination. Is this a mistake ? Should I go with a lower chart (bar) period ???] I want to scalp ES during the day. Thanks again !
Today is just a slow moving trend day so you will definitely get less signals on a day like this. I don't trade all signals, but on a typical day in es you will have 10-15 pnf signals. edit: Also, I gave you wrong information. I haven't traded ym in awhile so I went by memory. I loaded up ym charts to look at what I have been using and it has been 3,4 and 5 point boxes with 3 reversals.
Thanks again, Holy Grail. If you look up one message, I just edited my original message to you. Can you please comment on my QT settings ? [To clarify: I am using QuoteTracker with IB tick data. But with QT, you have to specify a chart period, for a given chart, as well as box size and reversal. So, I have been using 50 bars. It will use the Hi/Low from each 50 ticks then, in making reversal determination. Is this a mistake ? Should I go with a lower chart (bar) period ???] Thanks again !
The chart period has nothing to do with pnf. It has only to do with the lookback period. When I used QT I used the full 2 days as a look back period.
news can cause everything to fail, it is the nature of supply/demand being a variable, however, P&F is going to give you the most insight into supply/demand (IMO). The easiest way to position/swing trade is to use a bigger time horizon and/or go to H/L or on Close data.
All data is not daily in P&F. You need to consider the variables. Frequency of data (calculation type comes into play on anything other than tick data). Box size. Reversal. So the most comprehensive charts are done on tick data, then all you do is define your box size and reversal. This can be quite a bit of data though and it isn't feasible for super long term charts. I use tick data for day trading and even to build longer term charts if I have enough tick data. Then your frequency would go 1m, 5m, 15m, 30m, 60m, Daily and/or everything in between. With that type of data you have the option of calculating on close or using the high/low method. You still need to define your box size and reversal but you will see that the actual frequency of the data you use will change your charts. The more frequent the data the more "comprehensive" the P&F chart (keeping in mind the limitations of working with huge amounts of data).
Hello HG, I have two Q's: 1. the bullish percent chart is a 2x3 chart, right? 2. regarding your RS chart, it actually is a particular stock against the whole 800 stock database? what settings are used? 2%x3 ?