Learning to read Price Action with P&F Charting

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

  1. When a stock breaks through its bullish support line it is basically letting you know that there is no longer a clear trend.

    When you are long a stock you should sell on any pnf sell signal UNLESS you are still above the bullish support line.

    In this case you had a sell signal which also drops below the bullish support line. That is two strikes against you. The negative relative strength is strike three, IMO.
     
    #921     Jun 4, 2008
  2. subq

    subq

    Since you mentioned targets, I would also point out that Bullseye does not calculate price objectives normally...that is, vertical price targets as traditionally calculated.
     
    #922     Jun 5, 2008
  3. I haven't checked his horizontal count, but his vertical count is correct. He basically takes the count of the column that has just given a buy or sell signal and multiplies the box size times the column count times 3 and adds it the the bottom of the column that created the signal.

    Now I mentioned that dorsey recommends multiplying times two on shorts, but bulls-eye still uses 3.
     
    #923     Jun 5, 2008
  4. subq

    subq

    However, the traditional rule is that the X (or O depending on the direction) column must be completed in order to establish a count. It appears he is doing the count of a column that is not completed yet.
     
    #924     Jun 5, 2008
  5. Yes, but he does show on the count that it is not completed as shown in the attachment.
     
    #925     Jun 5, 2008
  6. I just checked the horizontal count on bulls eye broker, and it seems fine as well.
     
    #926     Jun 5, 2008
  7. subq

    subq

    ...the problem with that and one of the reasons for the rule... is that the column must be complete to have a set target, otherwise, the target could change as the column continues to change
     
    #927     Jun 5, 2008
  8. I think you are being a little picky.:D Even though the column is incomplete that is what the target would be had it been complete. At least you have a minimum target because the vertical target cannot go any lower.

    Personally I like horizontal targets better because they are much more conservative.
     
    #928     Jun 5, 2008
  9. yayt

    yayt

    Maybe a ridiculous question, but, how often are these price targets hit?
    i.e. what is the reliability of these patterns?
     
    #929     Jun 5, 2008
  10. The horizontal target on the nq is 2052 right now. Let's see if it hits it. I am long with a target of 2051.50. This is on the .5 chart based on the last signal. it stands at 2048.50 as I post this.
     
    #930     Jun 5, 2008