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

Good stuff, how long you been using P&F? I have been studying this method for a while, not very good at it yet though, but I really love this method. I often see this pattern, not sure if anyone else has, or if its been written about before, it happens on both upside and downside, will jump up/down, consolidate in a clear range then quickly go back down/up then continue to bounce in the original direction, nearly everytime I have seen it, it does it.

Do you ever see such a thing?

I attended two all day courses in London in 1992 on P&F and advanced P&F and have been using it ever since. In the format you are using (1point box X 3 reversal) it gives a good over-view of the e mini S&P.

I see that you use MarketDelta. What data do you feed it with?. The reason I ask is that at the point of the break out and retrace I have a different display at 1060. I use CQG and in the 1 point X 3 it will only create a zero on a full point and not until a full point has been printed. The market went to 1060, bounced to 1065 and then back to 1060. That gave me an unambiguous double zero print at 1060 with a print in between of X's reaching 1065. I have verified that the sequence was accurate on candles and ticks.

The e-mini does that type of pattern when it has been stuck in a range and gets an excuse for a break-out. I think that the cause was the rumour that the EU was preparing a relief package for Greece and the subsequent decline was when the rumour was denied by a German official.

What is important to an analyst is not the reason but what intent was displayed. The market achieved an upward break-out but with no follow through. The subsequent decline did not challenge or take out a major low to the left of the action. With three major congestion area lows untouched to the left, the way was clear to launch an upward push to the upside and 50+ points has been the progress so far.

P&F is an excellent way of filtering data to show what needs to be seen and if correctly configured can keep a trader on the right side of trends. One factor IMO reigns supreme in all forms of TA and that is that anything must be with reference to what it has done with reference to support and resistance to the left of the action. That 1060 is an example as it was a fall from a break-out but failed to challenge three lower lows.
 
always been meaning to look at p&f, but never really got round to it.

out of interest, is p&f the same as the charts richard wyckoff developed?
wyckoff.is one box reversal.the one step back method of construction.very useful for seeing s/r.also,best to use his method of charting when you calculate horizontal counts for continuation patterns
 
to any readers..lets look at the basic signals
bullish and bearish signals.pattern
The Chart Formations
The Bullish and Bearish Signals

Technical analysts attach particular weight to the fact that a market makes a higher low than a low made on a previous occasion. The inescapable conclusion is that the enthusiasm of the buyers has increased and/or the enthusiasm of the sellers has waned since that previous occasion. It is positive price action.
In its initial formation the bullish signal is nothing more than a double top formation with a higher low.

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courtesy of marcrivalland.com
 
and now the bearish signal/formation




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courtesy of marcrivalland.com
 
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Hi dentist007,
One of the 'classic' P&F formations I've never been comfortable with is the High Pole. Will you be tempted to go short around 10,220? I'd sooner wack in a short now, while price is near the top (probably!) on the grounds that it's likely to at least retrace some of its gains before advancing much further. What's your expert view on these things?

The thread's shaping up nicely; are you going to get into developing a simple trading strategy based around P&F charts in due course? I hope so!
;)
Tim.
 
timsk...we dont want to jump the gun ..
just wait awhile and it will all fall into place nicely
i shall say something now,that you wont find in any book..the key to it all is how you present the data on the chart.usually,the audience will just be youreself.but what you should do is imagine you are presenting the chart to an audience.you want to get the meaning across.the simpler the better,so what you have to do is change box sizes to get the best presentation.in fact even change time plot.ie for intraday,start with 1 min ,then go to 5 min.as you get to a higher timeframe then increase the box size.then you will be able to see the price action emerging in a readable form
here are 2 charts of the nas 100.
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IMG]http://i49.tinypic.com/2805w1y.png[/IMG]
 
both charts are 1 minute data plot.they have different box sizes.the first one is only a small bit of help.the second is more informative
 
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so..we are looking at the presentation of the chart.
you need to look for the chart that gives you some useful information.it might not be there,so if you dont see it...then its not there
then,look at the bias of the chart.we know what a bulish and bearish signal looks like...now for a sweet little trick,which i subconsciously had in my mind but was alerted to it,and made it a must when taking a first look at a chart..thank you for this to mike at cla alloys in houston
the signals MUST be consecutive.otherwise,there is too much chop
so look for CONSECUTIVE rising lows and double-tops..bullish
vice versa for bearish
do this for the last two signals on the chart.if they are consecutive ,you have a chance of some trend and putting on a trade.applies to all box sizes..and time plot
 
nas 100 today
1 min plot
black elipse points to where the chart got bullish.market gapped up above the breakout area.carried on to res area.you can see consecutive rising lows and breakouts

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a nice example on the dow
5 min data
a good area of support at the green line.play the bounces from the green line...then at the end,price action got bullish.then it popped at the yellow line to 10400 region
the next chart fomation is bearish...long columns up and down..indecision..downward columns with big retraces

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ok...so everyvbody getting the gist of what i am saying....
next thing,,,is what to look for when you think the trend might be reversing

a chart of the dow.
1 min data plot..we are in an uptrend.price got rejected at resistance.a minor downtrend has formed and we are in a midzone.does the uptrend continue or does the downtrend /minor continue
a tip i learnt from holygrail on elitetrader...wait for consecutive signals.ie another double-top or a triple-top to go long.many times you will see a double-top in a downtrend.we need reliability of the signal/a confirmation
we will see how this one plays out

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cannot update the chart..for some unknown reason,stockcharts server is down for me to day
good excuse to go and sit in the sunshine today
 
a trade on cable.put on today..
support showing nicely /black line.some nice bounces from the support area

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and later on in the day,whilst i was out...i missed this one
the chart formation is called a bearish signal reversed.

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10 minute\data for cable.the numbers are dates of the month
there is no timescale on these charts.we are looking at price chnge only
 
cable
hourly data..this is a one box reversal chart
s/r points are easily deined.
chart is bullish
a0eh3.jpg
 
a powerpoint presentation by jeremy duplessis of updata
unfortunately,this will not upload to thi site.if you want a copy,then email me.you might need to have powerpoint to look at it
[email protected]

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