Best Thread learning to read price action with p/f charts

[Dentalfloss]

hi malaguti
looks like a top,but more interested in this configuration
daily
6 by 3 hilo
we need to test that trend,also there is a previous breakout area nearby

 

[Dentalfloss]

not quite in the sweet spot as yet...imho

 

[Dentalfloss]

now here is a little trick that you might want to add to your trading strategies
on a 2 and particularly 3 box reversal charts.the point where the column changes usually provides a great s/r area to base trades
example....dow index daily data
1% by 3 reversal
the place where the column of "O" s will print is 14530 area.this has bean played with but not printed
see the chart attached
note the 50% area at 13963

 

[malaguti]

now here is a little trick that you might want to add to your trading strategies
on a 2 and particularly 3 box reversal charts.the point where the column changes usually provides a great s/r area to base trades
example....dow index daily data
1% by 3 reversal
the place where the column of "O" s will print is 14530 area.this has bean played with but not printed

in which direction though? That support may hold and you are looking to go long back in the direction of the column?

 

[Dentalfloss]

possibly...but it is a confirmation of bearishness in this case
on 3 box reversal..that print just seems to put the market in a bearish mode
you just seem to see it time and time again where the market reacts to a p/f configuration,not an actual signal
use with care..it is just an addition to the armoury

 

[Dentalfloss]

ARM
a failed signal
you must always be prepared for this ,especially at big s/r areas
am at master investor on saturday...lets hope its good

 

[malaguti]

BT again, this time its broken through on the 1%. Historically, this has been a very good setting. 1%x3 daily close.
Always a risky trade around this time of year.sell in May.

 

[Dentalfloss]

yeah..agree with that
but...this is a seriously bullish stock
there is a pole/blow off.
the 50% is in 255 region
4 year trend
2.5% box size by 2 reversal/close
thinking that it needs to test the bulls for that latest blow off

 

[Dentalfloss]

1.5500 res area called on cable 2 weeks ago
now lets see if it has some beef on it

 

[Dentalfloss]

isa..got you a new idea for market breadth
see that chart i posted yesterday of bt group
need to know how many stocks in the index are keeping to the main trend that started after QE in april 2009.it should be a good market breadth tool

 

[malaguti]

yeah..agree with that
but...this is a seriously bullish stock
there is a pole/blow off.
the 50% is in 255 region
4 year trend
2.5% box size by 2 reversal/close
thinking that it needs to test the bulls for that latest blow off

Bullish yes, but my chart of 2.5%x2 does not look the same as yours. we have retraced already and a new double top formed.

 

[Dentalfloss]

HI malaguti
ok..your chart corresponds exactly to my 2.4% by 2 close.
but....
that really is not a problem
cos...we want the chart picture to look at
so you might find that 2.6% by 2 close on yours corresponds roughly to mine
the main thing is we are moving around box/reversal to see what is happening and by seeing that pole ,we are in a different frame of mind
it only becomes a very slight problem when placing stops..in reality,no difference,cos you will be down box /reversal /time input when you look to trade
my data is from yahoo/free eod

 

[malaguti]

HI malaguti
ok..your chart corresponds exactly to my 2.4% by 2 close.
but....
that really is not a problem
cos...we want the chart picture to look at
so you might find that 2.6% by 2 close on yours corresponds roughly to mine
the main thing is we are moving around box/reversal to see what is happening and by seeing that pole ,we are in a different frame of mind
it only becomes a very slight problem when placing stops..in reality,no difference,cos you will be down box /reversal /time input when you look to trade
my data is from yahoo/free eod

i understand, thanks mate and I guess it goes to show that you could look at something in many different ways. change to a 5% and you have no pullbacks whatsoever. I'll post updates on this as we get some movement.

 

[Dentalfloss]

Dow index
120 min data
which way will it break ?? or will it carry on in a range ??

 

[Dentalfloss]

eurusd 4 hour
shows the downtrend that started in feb
note the new minor uptrend
now ..can we find the magical spot that will support that new uptrend ??

 

[Dentalfloss]

because it is a very short lived uptrend ,then should look at it on a lower time input
in this case 120 min
the uptrend is marked
25 pips by 3 reversal/close plot
trendline is broken at 1.2875 area and then major horizontal support at 1.2750 area
so there, we have a couple of big areas to watch for a reaction
overhead res at 1.3150

from the second chart,we have changed box/reversal and we can see an intermediate supp at 1.2960
32 by 2 reversal

so ther you can see how we do our analysis...simple..eh

 

[Dentalfloss]

go down a couple of pips on box size and see that price bounced off support
its now getting squeezed
if it breaks down then we have our supports which we talked about earlier
overhead res is easy from that minor downtrend

 

[Dentalfloss]

cable
gbpusd
looking at next week
we are already in resistance
so we could pullback to supp/aqua and green trendlines
there is major and trend resistance above/trendline cluster/red around 1.5630 area and then previous support area at 1.5700
nfp on friday.that might even take it up to 1.5700 area if the numbers are bad
daily data
25 pips by 2 reversal

 

[Dentalfloss]

eurusd 4 hour
no horizontal resistance seen
but some trend resistance above,which has rejected the price once already,that was also a previous support/orange horizontal line
trend res goes from 1.3150 to 1.3200 area
watchin to see if the uptrend holds on thursday/possible ecb rate cut and then nfp on friday

 

[Dentalfloss]

cable
over the last week
30 min data
12 pips by 1 close
can you see the signals ??
to go long