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 dentist007 tim if you post the screenshot.i would like to see the formation of the "x" and ...

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Old Apr 25, 2010, 11:36am   #71
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Re: learning to read price action with p/f charts

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Originally Posted by dentist007 View Post
tim
if you post the screenshot.i would like to see the formation of the "x" and o "s
do they form immediatley like that,or do you have to adjust the size of the chart..??
'ere you go.

sample_irt_p-f_chart.png

It's just a very basic chart - no bells or whistles. As I said in my earlier post, the user has the facility to set the chart to a variety of scaling options, one of which is 'automatic scaling with square boxes'. Using the mouse wheel one can then zoom in and out and the boxes remain perfect squares. No adjusting of the chart is necessary. If you're viewing a chart - which let's say has a very large and dramatic move on it - with just one click of the mouse, you can toggle to manual scaling which will enable you to compress the chart down so you can see the whole move. Basically, anything you can think of - you can do with this program! And the range of indicators is second to none.
Tim.
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Old Apr 26, 2010, 6:50pm   #72
 
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Re: learning to read price action with p/f charts

dentist007 started this thread nice charts tim..i owe you a couple of pints of stella
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Old May 5, 2010, 11:23am   #73
 
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Re: learning to read price action with p/f charts

dentist007 started this thread eurusd.10 min data
9 pips by 3 revesal.close
we can see the move down from yesterday.needs to retrace to 3050.ie 50% for any sign of strength to show.otherewise back down we go

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Old May 11, 2010, 4:26pm   #74
 
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Re: learning to read price action with p/f charts

dentist007 started this thread cable...gbpusd
20 pips by 3 reversal..hilo
10 min data plot..approx 3 weeks of data
some well defined trends
only a small pullback.since we moved into hung parliament territory

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Old May 11, 2010, 4:36pm   #75
 
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Re: learning to read price action with p/f charts

dentist007 started this thread eurusd
10 min data
some nasty downside vertical counts
20 pips by 3 hilo

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Old May 11, 2010, 4:38pm   #76
 
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Re: learning to read price action with p/f charts

dentist007 started this thread eurusd..10 min data
20 pips by 3 .hilo
some nasty downside vertical counts..black lines

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Old May 13, 2010, 4:51pm   #77
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Re: learning to read price action with p/f charts

Hi Dentist,

After our last discussion about PnF charts I decided to make use of the 2 weeks trial from Updata to test some PnF with it.

The problem I have with following Du Plessis strategy is that you are buying on a break out. After a breakout you often see a big retracement which not always will come back. What I found out is that you get whipsawed a lot if you keep your stop under the bottom of the pattern you used to enter the trade.

Maybe I am just missing the clue, or missing just that little point to make it profitable using PnF charts. I hope you can point me a little bit in the right direction?

I will post two charts from the same instrument only one with a .25 reversal and the other one from the same data with a .50 reversal. And I hope you are willing to point out a few trades you would have taken, and why you would have taken them?

Anyone else is also aloud to post their opinion

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Old May 13, 2010, 6:52pm   #78
 
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Re: learning to read price action with p/f charts

dentist007 started this thread emotions....looking at the charts you have posted.the price action looks to choppy,even on the 0.5.the auto trendlines and the counts dont look to be too much use imho.my own opinion is to take the trendlines off.you can put them back on with one mouse click,also take off the vertical counts
i think these are confusing the chart.if you look at some of the charts i have posted..the columns are longer.ie go up a box size or two,and time plot.lthen break them down manually into bullish and bearish sections,with 45 degree trendlines,also make sure you have enough look back to have the whole trend,whether it be minor,intermediate etc.i guarantee,that within 5 seconds,you will know exactly where you are going to trade.
with these nervous markets,i have changed my rules slightly.i wait for the p/b after the breakout.you usually find that the p/b zone can be picked up using the 45 degree trendlines on other box sizes.it seems that the market will not make a decision until it sees where the p/b is..just my opinion
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Old May 13, 2010, 6:55pm   #79
 
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Re: learning to read price action with p/f charts

dentist007 started this thread emotions...also do some analysis on eurusd.this has been the lead for some time.it makes up a big percentage of the dollar index
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Old May 13, 2010, 6:56pm   #80
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Re: learning to read price action with p/f charts

Quote:
Originally Posted by EmotionIsTheBigEvel View Post

The problem I have with following Du Plessis strategy is that you are buying on a break out. After a breakout you often see a big retracement which not always will come back. What I found out is that you get whipsawed a lot if you keep your stop under the bottom of the pattern you used to enter the trade.
Hi ETBE,
Absolutely spot on!
Here's one idea for you to mull over. It's not a solution as such, just something to cogitate on. Take any chart of any instrument - including your ES (???) charts. Look for two things:
1. An uptrend with a bullish support pattern in place, i.e. an uptrend with a printed bearish resistance pattern is no good - it negates it.
2. A downtrend with a bearish resistance pattern in place, i.e. a downtrend with a printed bullish support pattern is no good.
Now, take the uptrending example. Wait for a pullback to print, i.e. a column of red Os. In line with the main rule, they must not breach the low of the previous column of red Os. Assuming a 3 box reversal chart, go long immediately a new column of 3 Xs print indicating the uptrend has resumed. If you're cheeky, you can even put in a limit order a point or two (depending on the instrument traded) beneath the price that creates the reversal. Visa versa for short trades.

The logic is very simple, namely that the momentum is with the bulls in uptrends and with the bears in downtrends. Look at any chart and you will see that if condition 1. above is met, there are precious few columns of Xs that only have the minimum required of three. A few years ago, I did a study of two years of FTSE 100 charts and, from memory, the average reversal was 5.5 X's in an uptrend and a fraction more in downtrends. The flip side of this is true in that you'll have quite a lot of columns of just three Os in an uptrend. Combine this with S&R, supply and demand analysis etc and you might have the bare bones of something workable. If this doesn't make sense, let me know and I'll try and annotate a chart to show what I'm on about.
Tim.
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