Does anyone Swing trade on a weekly basis using pnf? ie. Buy a portfolio of stocks Monday and liquidate everything (that didn't already get stopped) out Friday? Looking at 3 paper trading portfolios I "bought" the first part of the week, it seems to make sense to take my profits and run and start fresh next Monday.
Hey all, I've made a significant amount of progress, I think, in programatically constructing P&F charts using end of day historical data. I have been comparing these charts to that of stockcharts and have noticed the sole difference being that of rounding error. What are the conventions with regard to rounding? i.e. if in a downtrend, round up? if in an uptrend, round down? if in a reversal, round away from the reversal direction? also, if anyone can help with the formula to calculate price objective, that'd be a great help as well.
There are two types of methods to project price. One is the vertical count method, and the other is the horizontal count method. Both methods should only be used after significant bottoms or tops. First we will talk about vertical column price objectives. Once a stock makes a significant bottom you take the first buy signal off of that bottom and count the columns of that first reversal. Obviously you have to wait for that x column to complete before you can do this. Let's say the buy signal comes from a column that has 9 boxes. The formula would be as follows 9*box size* reversal size or, in this case (my example will be the stock APC) 9*1*3=27. You would take that 27 and add it to the low point of the 9 box column which in this case is 40. The price projection would be 67. There was a new significant low on APC in January of this year. Based on the first buy signal after that low APC should make it to 89. We will get to see in real time if it works. I guess the main problems with these projections is you don't know what a significant high or low is until the move is pretty well under way. Also as a note, some pnf'ers like Dorsey believe the formula should be column length* box size* 2 for short signals. This is used to account for the natural long bias of the market. Maybe someone else can do the horizontal count. If not, I will do it when I get back. I am off to Austin, as one of my sons is graduating from the University of Texas today. For some reason the chart would not upload . http://clalloys.com/apcVerticalCount.png
Nothing wrong with trying it, but I don't see the point. PNF is not a time-oriented method. As long as the bullish% indicator is in an x column I would ride the train as long as you can, and then tighten up quickly when the stock's relative strength reverses, or we get a new 0 column in the bullish% index.
Any one have any thoughts on the Dow Jones Industrials. Please share them if you do. I see the market at some very critical levels right now
newmont.this gave a holygrail entry signal.consecutive signals.a better looking chart than barrick gold.coming up to trendline resistance now.so a bit late.but i have told the hedge that is what i am looking for not the shapeless barrick chart
Now that I have a method to my madness thanks to HolyGrail, I am trying to find the best Broker/ charting interface to work with. I like the simple charts like Stockcharts or even the ones like Holy Grail post. I have no clue what the brokers account page would look like, but I am comfortable with a format like yahoo finance's personal portfolios. Hopefully I can find one that interfaces, so I can have the list of stocks Im trading at the top and a PnF chart of each stock in the portolio below on the same page. I figure to have about 10 at one time. Any recommendations for a good combination. ie Bullseye Broker and IB etc. I set up an account with Think or Swim so I could paper trade. If someone could post or PM me a picture of what their program looks like, I'd appreciate it. I may sound like a simpleton on this, but I am pretty much a computer moron. thanks