learning to read price action with p/f charts

This is a discussion on learning to read price action with p/f charts within the Technical Analysis forums, part of the Methods category; ok...so we know now that that the user can adjust the box size..this being the increment of price change you ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Feb 7, 2010, 8:40am   #8
 
dentist007's Avatar
Joined Mar 2003
Re: learning to read price action with p/f charts

dentist007 started this thread ok...so we know now that that the user can adjust the box size..this being the increment of price change you want to look at.this will vary according to what instrument you are looking at.so for the dow at 10,000 will have a different box size to the ftse 100 at 5000
remember as price moves up the column is "X" s and as price moves down it is a column of "O"s
an important note......when the column change direction.these are the s/r areas

chart is 15 min data plot of the dow..the box size is 18 points.so when price moves up 18 points from the previous box we add an "X".vice versa if price moves down
this is a 3 box reversal chart.i will talk about that later on
Click the image to open in full size.
dentist007 is online now   Reply With Quote
Old Feb 7, 2010, 8:48am   #9
 
dentist007's Avatar
Joined Mar 2003
Re: learning to read price action with p/f charts

dentist007 started this thread very important....when the columns change direction..these are the s/r areas
so we can pick these off really quickly.we dont have to scroll back thru loads of different timeframes

these are the main s/r areas from the previous chart.price rejection by the market is easily seen.there are lots more s/r areas/minor as the columns of "X" and "O" changed direction

Click the image to open in full size.
dentist007 is online now   Reply With Quote
Old Feb 7, 2010, 8:52am   #10
 
dentist007's Avatar
Joined Mar 2003
Re: learning to read price action with p/f charts

dentist007 started this thread same chart ,but i have altered the box size to 2 points.the s/r areas are too far away from each other.the chart is too big and is unreadable.it is obvious that a box size of 2 pts for the dow on a 15 min data plot is wrong.the chart is unreadable
Click the image to open in full size.
dentist007 is online now   Reply With Quote
Old Feb 7, 2010, 8:56am   #11
 
dentist007's Avatar
Joined Mar 2003
Re: learning to read price action with p/f charts

dentist007 started this thread you can see that the columns are too long.so you have to adjust the box size to make the chart readable.that is up to the user
you can practice this for free,by going to stockcharts.com.eod charts are free
dow symbol is $indu
cable is fxb
ftse is $ftse
where it says sharp chart.click on this .it will have p/f
dentist007 is online now   Reply With Quote
Old Feb 7, 2010, 9:20am   #12
 
dentist007's Avatar
Joined Mar 2003
Re: learning to read price action with p/f charts

dentist007 started this thread stockcharts.com
once you have the chart up.then to alter the box size,go to chart scale.click on scaling method and click on user defined.then choose box size.dont alter any other inputs.a nice easy way of learning the ropes
dentist007 is online now   Reply With Quote
Old Feb 7, 2010, 9:27am   #13
 
dentist007's Avatar
Joined Mar 2003
Re: learning to read price action with p/f charts

dentist007 started this thread so in 1 quick look we can see alot of information on s/r.the next easy thing to see is the column characteristics.
are the columns long or short.?remember,direction change is s/r.the chart is showing you supply and demand.long columns mean the market was hot to buy or sell the stock/bond etc


chart below is 15 min data of cable..currency shares british pound.you can see that the market was eager to sell cable..long downward "O" coilumns.minor recoil "X" columns.a strong downtrend

Click the image to open in full size.
dentist007 is online now   Reply With Quote
Thanks! The following members like this post: timsk
Old Feb 15, 2010, 7:13pm   #14
 
dentist007's Avatar
Joined Mar 2003
Re: learning to read price action with p/f charts

dentist007 started this thread next thing to look at is the bias on the chart
is the price action bullish or bearish..??
that is easy,we just look at the columns
what are the characteristics of the columns.??
are the upside columns "x" long or short
are the downside columns "O" long or short
the last few columns...who had control "X" or the"O"
also were their any rising lows or lower highs

15 minute data from nasdaq 100 index
Click the image to open in full size.
dentist007 is online now   Reply With Quote
Thanks! The following members like this post: trendie
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Article: Read the Market Using Price and Volume T2W Bot Educational Resources 1 Feb 1, 2013 1:27pm
Learning to trade with price-action lgthomas Trading Journals 10 Jan 25, 2010 6:33am
learning price action using MAs, fibo and horizontal levels TAjammy Trading Journals 34 Aug 12, 2009 4:15am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)