learning to read price action with p/f charts

price is in a consolidation.so went down to the 1 minute data plot
because price action was a bit crazy and unworkable in a 3 box reversal.i went down to 2 box reversal to see if i could make sense of the price action

not an easy one to trade.the doown thrust was well behaved.aswell as the upthrust.it stuck to the bullish /bearish lines.after that,then things became more erratic
0.75 box size by 2 reversal.hilo plot

if the bullish and bearish sections become erratic like that,i always walk away.in my opinion,the market is confused and the trends are too erratic
cable...gbp usd 10 min
an orderly chart...no mess...maybe ,it will get messy..if it does ,then i will find another tradeable instrument

p/f does bring order to the chart and sorts out the chaos.something that does not happen with other charts..imho

Hi Emotion,
I've used them on and off over the years depending on what I was trading. They are not the easiest chart to use for day trading stocks IMO because the box size will vary from one stock to the next. This is a complete pain if you're watching lots of stocks during the day. However, this year, I've decided to restrict myself to futures - starting with the YM and now I'm about to switch to the ES. And yes - I will will indeed be using P&F charts to trade the ES.

Interestingly, you mention Investor RT in your post to dentist007 - who doesn't seem impressed with them! I'm about to open an account with them having demo'd their software this week. I totally disagree with d007 - I think the Investor RT P&F charts are among the best I've ever seen. They knock spots off both TradeStation's and eSignal's. They're drawn perfectly (to my way of thinking) and you can draw 'true' 45 degree trendlines very easily. Support seems excellent too. I'm very excited about using them; once I know my way around the software a bit more - I'll post some charts of the ES up here. In the meantime, you can see some of their P&F charts here:
Investor RT P&F Charts
NB - not all the charts are Investor RT's - some are MarketDelta's - so check the logo in the top left hand corner! I know d007 particularly likes his charts to have perfect square boxes so that the aspect ratio is 1:1. I tend to agree with him on this and while not all the charts on the linked webpage show this (i.e. some are squashed or elongated), there is a facility in the Investor RT P&F preferences to set the charts to a perfect square for those of us that want it.
Enjoy,
Tim.

tim
lets see some investor r/t charts.the ones i swa look skewed

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.



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.

nice charts tim..i owe you a couple of pints of stella