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; eurusd.chart if you look at the chart i posted.i had broken it down to bullish and bearish sections.the green trendline ...

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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

Click the image to open in full size.

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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Old Apr 24, 2010, 4:32pm   #61
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Re: learning to read price action with p/f charts

Quote:
Originally Posted by timsk View Post
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.
Sorry Tim, wasn't aware of this information on t2w.
I've read them myself, and one interesting point that stood out for me was the fact where they showed that PnF charts made up out of 1 minute close data instead of tick data would produce nicer and more reliable charts. I have seen this myself because I use Interactive broker as my data deliverer. They don't have historical tick data so when I renew a chart all history is made out of 1 minute close data while the real time gathered data is made out of tick data.
I was only brainstorming on this fact because in the PnF charts we have thrown out Time and now we would embed it again...a little bit controversial...

But nice to read.

Hey Tim, I read somewhere that you started around 2006 with PnF charts. Are you daytrading with it? And how are you doing using PnF charts? Are you using other TA stuff or only PnF?

Cheers,
Emotion
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Old Apr 24, 2010, 4:55pm   #62
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Re: learning to read price action with p/f charts

Quote:
Originally Posted by dentist007 View Post
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
Thanks for your response and help Dentist!

You are right, working with such horrible charts is impossible. I was already planning to switch to InvestorRT, are they any good that you know? I use Interactive Brokers as my real time data feat and also as my Broker, that's why I am withholding from Bullseye, and because it doesn't have real time support yet.

Du Plessis said somewhere in his book that for day trading and the shorter time frames e.g. E-mini SP500 0.25x3 that the 45% trend lines wouldn't work. I can't test it at this moment as you pointed it out already, but what is your opinion about this?

We spoke about entering a trade already, it seems that you are following the rules of Du Plessis mostly. What about closing a position? Only when a trade goes through a trend line?

The nice trades I have noticed in my short period of PnF trading is waiting for a nice pattern to set up in line with the trend and then closing on the first dubble top/bottom sell signal. When you have charts created by 1 minute close data (not the tick) I see in good strong trends that there is mostly a very nice trend without any double top/bottom sell signal in it.

If you would have read the book of du Plessis earlier my trading career would have looked very difference ;-) Dentist, how long are you already trading with PnF charts? Are you using other TA methods too or only the PnF charts? And what kind of trading do you do with it e.g. day trading, swing trading?

Thanks,
Emotion
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Old Apr 24, 2010, 6:19pm   #63
 
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Re: learning to read price action with p/f charts

dentist007 started this thread updata will take the feed from interactive brokers.it costs $75 a month.
not sure where you read that p/f will not work for e mini s500.only thing i can think of is log box
investor r/t,the charts ...from what i have seen .i am not sure whether they are any better than ninja.the "x" and o are not formed properly.ie elongated or squat.working with bad charts with p/f is dangerous.
exits,either p/f signal or trail stop

QUOTE=EmotionIsTheBigEvel;1111222]Thanks for your response and help Dentist!

You are right, working with such horrible charts is impossible. I was already planning to switch to InvestorRT, are they any good that you know? I use Interactive Brokers as my real time data feat and also as my Broker, that's why I am withholding from Bullseye, and because it doesn't have real time support yet.

Du Plessis said somewhere in his book that for day trading and the shorter time frames e.g. E-mini SP500 0.25x3 that the 45% trend lines wouldn't work. I can't test it at this moment as you pointed it out already, but what is your opinion about this?

We spoke about entering a trade already, it seems that you are following the rules of Du Plessis mostly. What about closing a position? Only when a trade goes through a trend line?

The nice trades I have noticed in my short period of PnF trading is waiting for a nice pattern to set up in line with the trend and then closing on the first dubble top/bottom sell signal. When you have charts created by 1 minute close data (not the tick) I see in good strong trends that there is mostly a very nice trend without any double top/bottom sell signal in it.

If you would have read the book of du Plessis earlier my trading career would have looked very difference ;-) Dentist, how long are you already trading with PnF charts? Are you using other TA methods too or only the PnF charts? And what kind of trading do you do with it e.g. day trading, swing trading?

Thanks,
Emotion[/QUOTE]
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