P&F Charts

Discussion in 'Technical Analysis' started by gummy, Sep 26, 2005.

  1. gummy


    Does anybuddy here use P&F Charts?
    If so, can you tell me what you look for?

    Although I find them interesting, I can't for the life of me tell what one would look for :(
    Any comments would be greatly appreciated.
  2. Well, you can try the book mentioned on your linked page, "Point & Figure Charting" by Thomas J. Dorsey. Most consider it a classic.
  3. I've been looking at them for some time now and they're very useful. The main benefit is that support and resistance levels jump right out at you (at least they should) because PnF filters out so much noise.

    By adjusting the box size and reversal amount, you can visually determine trading opportunities. For instance you might decide that with a certain box size and reversal amount that 80% of breakouts result in a profit of 4 boxes. You can set your initial stop on breakout to be the reversal amount (say 3 boxes). Then trail the stop as the trade moves in your favor, using the same reversal amount as the stop distance. The possibilities are endless.
  4. Bob111


  5. gummy


    Thanks steveqee58.
    Do you mind if I stick your comments here?
    If so, I'll remove it.

    I've spent some time surfing the net (that's my daily exercise), looking for personal experiences with P&F charts.
    Not much of that around, it seems.
  6. sprucecb



    Your page is a great resource. Thanks.
  7. Babak


    gummy, I don't look at PnF charts but do rely on bullish % (as derived from PnF charts). They're pretty useful for long/intermediate term trends.
  8. alphaone


    ... without springing for much dollars?
  9. alphaone


    well, let's try that again ... anybody know if there is P&F software for Forex out there, without springing for much dollars ???