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; Originally Posted by EmotionIsTheBigEvel Hi Kimo, It is possible what you see, but it is not what you want. PnF ...

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Old Apr 23, 2010, 6:55pm   #51
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Re: learning to read price action with p/f charts

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Originally Posted by EmotionIsTheBigEvel View Post
Hi Kimo,

It is possible what you see, but it is not what you want. PnF charts are merely about patterns and trends.

And as response on your previous question 1, no 'x' and '0' are only drawn when new prices occur, not when time moves on! PnF charts are charts without time!!! But they are still 2 dimensional ;-)
And to answer your question 2, go over to elitetrader and find the thread "Learning to read Price Action with P&F Charting" by holygrail, it gives you a nice introduction into the PnF charts. But to really understand it I would like to recommend you the book from Jeremy du Plessis as Dentist points out too.
Good advice Emo' with one notable exception - there's no need to send peeps over to ET for a solid intro to P&F - we have it all here!

Point and Figure Charting: Part 1 - The Basics
Point and Figure Charting: Part 2 - The Bits That Aren't As Basic
. . . and if the first two articles get your juices flowing, you can go on to this:
Point & Figure Gone High Tech
Enjoy!
Tim.
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Old Apr 24, 2010, 7:52am   #52
 
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Re: learning to read price action with p/f charts

dentist007 started this thread emotion..i dont think that ninja trader is right for p/f day trading.first of all,the "x" and the "o" must be properly formed and not squat or elongated.so that means you can draw the 45 degree trendlines to show the trend properly.i know from other ninja users,that they are going to rejig the p/f at some point.keep to 45 degree trendlines.you get a better feel
the other thing is that they must be calculated properly.so that you can look at close and hilo plot.so therefore,you can look at all aspects.althought,in day trading,a good starting point is 1 min close plot.make sure the columns are not too long
the solution is....dont use ninja for the final decision,especially with the tick plot
if you have iq feed,there is a simple solution.buy bullseye/cost $149.then add "qcollector" which is $99.you can then programme in qcollector to get any data you want,ie tick,1minute etc.it is slightly limited.but carl,the owner of bullseye is soon to come out with a real time version
even better.use updata at $75 a month.it will take iq feed
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Old Apr 24, 2010, 7:57am   #53
 
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Re: learning to read price action with p/f charts

dentist007 started this thread fom duplessis
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Old Apr 24, 2010, 7:59am   #54
 
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Re: learning to read price action with p/f charts

dentist007 started this thread and this also

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Old Apr 24, 2010, 8:02am   #55
 
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Re: learning to read price action with p/f charts

dentist007 started this thread so this is the result
nasdaq 100
10 min data plot
from last week
see how easy it is to read

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Old Apr 24, 2010, 8:05am   #56
 
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Re: learning to read price action with p/f charts

dentist007 started this thread eurusd
last week
10 min data plot.see how easier it is to read

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Old Apr 24, 2010, 8:14am   #57
 
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Re: learning to read price action with p/f charts

dentist007 started this thread eurusd.chart
if you look at the chart i posted.i had broken it down to bullish and bearish sections.the green trendline was the divider.this was a minor trend.but the lookback period must be enough to get the WHOLE trend.then you can break it down into bullish and bearish section.once price had penetrated the green line/downwards,that to me was fully bearish.this happened on tuesday at about 3pm.it turned out the greek crisis emerged again the following day.
the rule is...long above the bullish support line.short below the bearish resistance line
my own style is not to trade the p/f signals exactly,but to trade the reaction points.ie p/b,then confirm with a p/f signal on a lower box size and possibly a lower time plot.if going long.must have rising lows.vice versa shorts
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Old Apr 24, 2010, 8:30am   #58
 
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Re: learning to read price action with p/f charts

dentist007 started this thread the 45 degree trendlines will help you accept or reject the p/f signals.therefore,if the "x" and "o" are not properly formed,these do not give the right aspect ratio to the chart.even if you draw 45 degree trendlines,you are still not getting the right picture.ie it is skewed.there is one method around this,that is to elongate the chart by height and width to get the x and o shapes right.and then add 45 degree trendlines
it- finace charts can be fixed this way.but uneless they are calculated properly,then the true picture is not seen.these chart are not recommended by me
stockcharts do intraday p/f for $15 a month.they are pretty good.20 min delayed
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Old Apr 24, 2010, 8:35am   #59
 
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Re: learning to read price action with p/f charts

dentist007 started this thread a chart from the duplessis presentation
you can see how he has broken it down into bullish and bearish sections.you can also see that the chart has enough lookback period to show the full uptrend,the full downtrend and the new uptrend

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when you see a break of an important trendline.make a quick note of the date it broke.then if you are looking ata lower box size/time plot ,then make sure this point is on
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Old Apr 24, 2010, 9:32am   #60
 
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Re: learning to read price action with p/f charts

dentist007 started this thread forgot to mention.once the chart is broken down into sections,put on the vertical counts,use duplessis rules.that really gives you a feel of what is happening.
then wait for p/b.wait for vertical count to form.once breakout happens,you most often get a p/b
assess that p/b
1.did it mke the chart reverse.or was it a major p/b on that time plot.,did it take out an s/r.if not,then enter at that level or near.just my 2 cents worth
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