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

[Dentalfloss]

Hi Paszkman
here is the chart...its wild

 

[Dentalfloss]

but..we can accomodate this wild price action with p/f and trade these moves
how ??
by changing the box size and reversal and using a different construction method
so,,same data 30 min
close plot
15 point box size
red line is the breakdown/entry
we had the orange line marked as it was a previous breout point.price stayed within the trend/green
so,,a breakdown,a bounce.a retest of prev supp which turned out to be res and back down to horizontal supp
p/f thrives on this..you just have to have nimble fingers to change the parameters of the chart
pips banked...plenty

 

[metrader]

dax index 30 min
2 trends since 15 april
note,,,price moved and we now have an internal bullish support line/green
we are at horizontal res now..supports can be easily picked off from this chart

Not much respect for the lines from DAX this time

 

[Dentalfloss]

the trendlines can be the guide.They do not have to be respected.the market determines that...but if you see what happened on the updated chart,you will see that we got a great signal to go short,by the break of the internal trendline/green.
The follow thru was that 15 point box size posted earlier today in which shows where trades were from
many pips banked from that volatility

[/QUOTE]

 

[Dentalfloss]

dax 15 min
today"s price action..the downtrend started overnight,Where you see 25 on the chart is today"s price moves started/purple downtrend line
So we had the guide this morning that the downtrend line/purple was the runner.Price never went near it even when it rallied
EVERY RALLY GOT SHORTED today and a few long plays when it rallied to res

pips banked
to find out where those rallies ran out of steam..then we have to move around box sizes/reversals and time input to 5 min to get the trading signals to short

hope this explains it
who cares whether the price respects the lines...all we are looking for is volatility and trading signals with decent follow thru
we can accomodate wild price action with p/f by being nimble fingered by changing parameters of the chart.facebook on 1 minute can sometimes get wild...that is easily playable and you can get loads of pips

 

[metrader]

the trendlines can be the guide.They do not have to be respected.the market determines that...but if you see what happened on the updated chart,you will see that we got a great signal to go short,by the break of the internal trendline/green.
The follow thru was that 15 point box size posted earlier today in which shows where trades were from
many pips banked from that volatility

[/QUOTE]

Thanks Dentist.

I don't know if I would have traded that one as there was another trendline below and it was against the trend.

 

[Dentalfloss]

yes metrader
but...
the green trendline is a guide.ie ..it could be where price bounced
if there was a bounce it would have stopped you out with good profits
however...if there was no move to stop you out ,then you are still in the trade
with p/f you cannot be squemish...if you are, then lower your pip value and /or keep the trendlines near the price and use those as the stop
basically..the trendlines act as a guide
all we are doing is filtering which p/f signals to take uneless ther are other patterns brewing
same with horizontal s/r..it is a guide.take the dax last friday..i had supp at 9400 approx .other people had 9370-9378 area.The market got supported at 9359..So..it is a guide only
same with fibs..gann ma elliot and even gaps etc etc including vertical counts
it does not mean that the market will stop at these points you worked out

 

[Dentalfloss]

ftse 100
30 min data shows the trends that started on 15 April
2 trends..latest one started on 29 April
if any sign of breakdown the latest one will get tested first
then down to 6750 area
nfp and chine news in the next few days

 

[Dentalfloss]

dax 30 min
goin either way

 

[glebecki]

Annotations

Hi dentist007. It did manage a pullback on the S&P 500 P&F Chart (10 point box size), however volume is still fairly low overall, so IMO it would need to see a lot more volume if it breaks out to have any chance of getting past the 8 months of resistance above any time soon.

Hello, isatrader. Going through this thread (dentist007 - learning to read price action with p/f charts I came across your annotated StockCharts.com chart showing annotations not offered by StockCharts.com. Would you please tell me what tools you used to make those annotations. I would like to do the same.
thanks, --george

 

[Dentalfloss]

cable 4 hour gave us a fake
now in support for a bull test

 

[Dentalfloss]

Russell 2000..smalll caps
1% box size..log box
what a spectacular trend..It can quite easily retrace without too much detrimental affect to the trend
no wonder it lagged over the last few weeks

 

[Dentalfloss]

SpX areas to watch

 

[Dentalfloss]

same data..2 hour
a much bigger box size
we can see the two trends that both ended up at res
Notice the "5" the month character.....price has broken out
so if we take the width of the latest horizontal count/ orange...that gives us a 2 box target.This is around the 1920 area..marked with a yellow line
so..in theory we could expect reasonable res in that area

 

[Dentalfloss]

DAX over the last year
2 big moves upwards
been in a consolidation for the last 6 months...but there is an inkling of a move up to yellow line
there is a horizontal count which is active
price is at big horizontal res

 

[paszkman]

DAX over the last year
2 big moves upwards
been in a consolidation for the last 6 months...but there is an inkling of a move up to yellow line
there is a horizontal count which is active
price is at big horizontal res

Hi dentist, love your p+f charts..how do you use them to forecast a target?

 

[Dentalfloss]

targets...yeah...sometimes
just gives you an idea of what to expect

 

[Dentalfloss]

 

[Dentalfloss]

finally..we have an active vertical count/down on dax 240 min

 

[Dentalfloss]

gbpusd 30 minute data
areas to watch if we get good nfp numbers