Point and Figure

Discussion in 'Technical Analysis' started by KGTrader4, Mar 20, 2022.

  1. KGTrader4

    KGTrader4

    Anybody use PnF charts? I used to be a Dorsey Wright subscriber never became an expert at it but seems like PnF eliminates a lot of noise but still grabs the big moves up and protects against the big moves down
     
  2. taowave

    taowave

    Better off with a MA/ Breakout approach as you can backtest/WFA...
     
  3. Bad_Badness

    Bad_Badness

    They are good for when there is less noise. I.e. longer term time frames such as daily charts and swing trading. One needs to mesh the "flips" with certainty and actionability. I.e can you get in and out and manage the risk once one has a signal. Hence time frames with less noise do better with Point and Figure.

    Every tool has its uses and misuses.
     
  4. I've never met or seen a trader that seriously uses them and prefers them over other candle types. Would be interesting if someone actually primarily uses them and gives some reasons and explanations. It's one of the only candle types I strongly dislike and really couldn't figure out how to effectively use.
     
  5. ajacobson

    ajacobson

    D/W still does a free podcast. A bright guy sold his P and F ETF business for something like $250 million.
     
  6. easymon1

    easymon1

  7. maxinger

    maxinger

    when the computer was available for home use, PNF became obsolete

    perhaps some elderly folks might still use PNF.