Chart Patterns

f2calv

Experienced member
1,317 277
Aye, you’d finish up with a very busy chart :)

Used PF for many years in the days when you had to draw your own charts. PF was easiest and used less graph paper. The advantage of having a pencil in your hand was that you got a real hands on feel for what was happening.
Yes a very busy plot if the price action carried on like that, but the beauty of p&f as you obviously know is that if the price sticks in a tight range for the rest of the day you get no new p&f columns at all - but a candlestick chart will plot a new candle every 15minutes without fail which would be just noise!

As Tim says kudos for hand drawing those charts :)

...for my part I have coded my own p&f charting library which can process nearing a million ticks per second so thankfully no pencil and paper needed here ;)

Sent from my Nexus 6P using Tapatalk
 
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timsk

Legendary member
7,087 1,880
. . . As Tim says kudos for hand drawing those charts.
. . . and kudos to you too f2calv for building your own bespoke charting software.

As a matter of interest, as you clearly have an excellent understanding about how PnF charts are built, which of the free platforms available through the mainstream spread betting and CFD brokers would you recommend for those wishing to use PnF? To qualify, I assume none of them - hence you built your own. Nonetheless, which in your opinion is the best of (a bad) bunch?
Thanks,
Tim.
 

f2calv

Experienced member
1,317 277
. . . and kudos to you too f2calv for building your own bespoke charting software.

As a matter of interest, as you clearly have an excellent understanding about how PnF charts are built, which of the free platforms available through the mainstream spread betting and CFD brokers would you recommend for those wishing to use PnF? To qualify, I assume none of them - hence you built your own. Nonetheless, which in your opinion is the best of (a bad) bunch?
Thanks,
Tim.
Cheers! I wrote my own because no other software (that I could see at the time, and this was pretty much 2 years ago that I started) would handle real-time tick data (and according to du Plessis tick data and p&f are the bees knees when used together).

I have also (maybe to my detriment) avoided looking at other p&f software since I started, aside from of course a few of the charts dentist & moneylender have posted in the p&f thread - mainly because I didn't want my software to be influenced by any potential 'competition' should I ever try to monetise it.

Having said that I'm not oblivious to "the competition" in the TA charting world and earlier this evening I did a quick Google to try and find a suitable comparison between p&f and renko charts and www.tradingview.com p&f charts looked pretty swish for those wishing to plot EOD data...

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jjames69

Member
52 3
toppy looking chart here. possible h & s top. the sector index(gray line) is leading the way down, earnings date on february 5th.

 

timsk

Legendary member
7,087 1,880
. . . I have also (maybe to my detriment) avoided looking at other p&f software since I started, aside from of course a few of the charts dentist & moneylender have posted in the p&f thread - mainly because I didn't want my software to be influenced by any potential 'competition' should I ever try to monetise it. . .
Hi f2calv,
In the event that you decide to go down this path, I recommend coding it for MT4. There's really not much out there: Moneylender's charts are about the best there is and they're far from ideal. If you get it right and don't take the pi$$ by charging too much, you could have traders the world over beating a path to your door.

By way of example, this chap does a good job for Renko on various platforms, including MT4, but he doesn't offer PnF. A good website, fair price and good service/support: AZ-iVEST.
Tim.
 
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neil

Legendary member
5,167 746
Hi f2calv,
In the event that you decide to go down this path, I recommend coding it for MT4. There's really not much out there: Moneylender's charts are about the best there is and they're far from ideal. If you get it right and don't take the pi$$ by charging too much, you could have traders the world over beating a path to your door.

By way of example, this chap does a good job for Renko on various platforms, including MT4, but he doesn't offer PnF. A good website, fair price and good service/support: AZ-iVEST.
Tim.
Tim -another one for you.

https://ovo.cz/
 
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Penny Picks

Member
67 6
Tim -another one for you.

https://ovo.cz/
The Indicators saying "Indicators show the Past" is true. But, they will also play a part in the "Prediction" of a possible price movement.

ie: An Indicator, an MACD for instance, in Price in a "Down Trend" will usually stay negative. However, when the downtrend weakens the MACD will, most of the time, start to "Diverge" from the price. That's the "Predictive" nature of a lot of indicators. (y)
 

jjames69

Member
52 3
The Indicators saying "Indicators show the Past" is true. But, they will also play a part in the "Prediction" of a possible price movement.

ie: An Indicator, an MACD for instance, in Price in a "Down Trend" will usually stay negative. However, when the downtrend weakens the MACD will, most of the time, start to "Diverge" from the price. That's the "Predictive" nature of a lot of indicators. (y)
i've always felt momentum indicators follow price, and can be lagging. a better indicator showing technical strength would be one comprised of tick volume. sometimes, on index etf's, i use tick volume with moving averages attached to make a mcclellan indicator.
 

jjames69

Member
52 3
toppy looking chart here. possible h & s top. the sector index(gray line) is leading the way down, earnings date on february 5th.

triggered, target met, and profits taken.

 

The Hawk

Newbie
2 0
rather than looking for chart patterns, it pays to understand the market structure that leads to these patterns.
Chart patterns are categorizing market structure into an idealized limited forms, and market action is far more than being ideal, which means messing more opportunities.
My humble advice for you is to understand how congestion phases begin, form, and end, and how breakouts/breakdowns occur, continue or fail.
 

Joules MM1

Established member
640 141
Aye, long as you cater properly for the pattern failures (of which there are many - particularly in real time) you’re good to go.
barjon !

great post ....mostly coz it's circular

patterns are secondary, they are merely ideas of confidence and permission to do something.....but really execution levels (where bars open and close, where youre forced to make or enforced in making a transaction) are the tell ....execution levels dictate what youre really doing and the pattern you think youre basing your trade on is a distant idea in reality
 

tomorton

Legendary member
7,458 1,010
Interesting reading, thanks Quantower. I will definitely explore the QSMA site a bit more later.

Use of the location of the day's Close for a short-term entry is also covered in Street Smarts by Raschke & Connors but I found it one of the most confusing chapters in their book. They say that days that closed in the top 10 percent of their range for the day had a 80-90% chance of follow-through the next morning but actually closed higher/lower only 50% of the time. This implies that there is a good chance of a midday reversal.

But they then describe their 80-20 strategy which requires that the market opens in the lower 20% of its daily range and closed in the upper 80% of its daily range, in which case a sell setup would be indicated for the next day (vice versa for buys).
 

hatemypips

Established member
504 36
What are the easiest chart patterns available for freshmen in tech analysis. Been on fundamental side for a long time, now want to try myself in drawing lines correctly.
 

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