Learning to read Price Action with P&F Charting

I added one more comment on the hal chart. With all pnf price projections it is absolutely essential that you do not use a new target until the old one was reached or obviously failed (bullish support line failure). New price targets should not be developed until a new trend is in place, or a breakout from consolidation outside of the previous trend)

for example, on the same chart I noted a vertical target for hal that is still in effect (from june 2005) because Hal has not violated its bullish support line. As long as that is true the vertical price targets seem to be fairly accurate.

 

Holgrail,

In regard to the NYSE Bullish Percent Index, what do you use as your BOX SIZE parameter ??

Thanks in advance.

 

2% per box with a three box reversal.

 

Thanks ! I was curious what you use. Seems like 1 point size with 3 point reversal was a better indicator to catch recent down drift from DOW 13,000.

 

I'm only following the conventions of pnf. I'm sure you can use anything you deem worthy. Just remember though, the lower the number the more whipsaws you will have.

 

Well let's see how good this target stuff works. Es is supposed to make it down to 1344 today based on the .75 chart..

 

Today was a slow day at the office so I did trade. I was up all day, but watched one 4 point gain turn into break even waiting on my target, and unfortunately I had 3 contracts short on my last trade so I went from plus 415 to -475 on the last trade of the day.

 

Thought I'd try testing a Neutral Bias trade to see if it will hold up for swing trading on a weekly basis. Looks good the first day, but will have to wait till Friday to see if it really works.

 

I haven't looked at the shorts yet, but your longs are EXCELLENT picks.

Just be careful on BUD as they are a rumoured acquisition which can change quickly.

Excellent Job!!!!!

 

thanks
My long term plan is to devise a system where I can get in Monday morning, get out Friday evening and have enough of a neutral bias that those down days like last week don't kill me if I don't watch it like a hawk all week.
Then spend Friday night picking the next weeks Portfolio