Point & Figure Charting

[isatrader]

Attached is GBP/USD hourly P&F chart up till 2pm today that I’ve been updating for the last few days by hand. The credit goes to KinsaleForex though for setting up the chart and mapping out the last few months and getting me started. 🙂

 

[isatrader]

15650 Target hit. Max 170 point gain if it was traded from the trend line break, but a decent 110 point gain if traded from the third buy signal at 15540.

 

[isatrader]

Safezone Stop loss Calculation

Here’s a screen shot of the safezone stop calculation spreadsheet. Is possibly still too loose, so might make the multiplication value less than the 0.25 it’s at at the moment.

 

[isatrader]

GBPUSD P&F Chart 5pm

The 4pm bar has moved the safezone stop up to 15590. I’ve also added the downtrend stops as the blue dots.

 

[timsk]

Hi isatrader & KinsaleForex,
Besides the books you've already referenced, there's one that might escape your radar that's well worth a look at IMO called Marc Rivalland on Swing Trading Rivalland is nuts about P&F charts and devotes a whole section of his book to them. It's basic stuff comparted to Du Plessis' Definitive Guide, but his comments and observations are well worth reading nonetheless. Don't let that fact that it's aimed at swing traders put you off - there's plenty in there of interest for the day trader too.

You appear to be going down the DIY route regarding charting. There's a lot to be said for this and the ones you've produced look great to my eye. If you do go down the commercial route, tread carefully, as quite a lot of vendors offer P&F charts but don't fully understand them. The main issue tends to be the aspect ratio of the chart which needs to be 1 : 1 in order to correctly draw in 45 degree trend lines. Surprisingly, lots of software packages struggle to do this!

If you need any help, dentist007 is a P&F buff and all round helpful bloke. You can find him and see examples of his charts on the Wallstreet1928 Analysis & live calls on FTSE,DAX,S&P...aimed to help New traders thread. If you can get hold of him (and I haven't seen him around for a while) the real expert when it comes to P&F and computers is DaveJB who's written some excellent articles for T2W on P&F - which you can find here. Before you get too excited, he no longer offers his P&Fscan software for sale. However, his technical knowlwdge and experience is second to none and he's always helpful to genuine enthusiasts.
Tim.

 

[isatrader]

Hi isatrader & KinsaleForex,
Besides the books you've already referenced, there's one that might escape your radar that's well worth a look at IMO called Marc Rivalland on Swing Trading Rivalland is nuts about P&F charts and devotes a whole section of his book to them. It's basic stuff comparted to Du Plessis' Definitive Guide, but his comments and observations are well worth reading nonetheless. Don't let that fact that it's aimed at swing traders put you off - there's plenty in there of interest for the day trader too.

You appear to be going down the DIY route regarding charting. There's a lot to be said for this and the ones you've produced look great to my eye. If you do go down the commercial route, tread carefully, as quite a lot of vendors offer P&F charts but don't fully understand them. The main issue tends to be the aspect ratio of the chart which needs to be 1 : 1 in order to correctly draw in 45 degree trend lines. Surprisingly, lots of software packages struggle to do this!

If you need any help, dentist007 is a P&F buff and all round helpful bloke. You can find him and see examples of his charts on the Wallstreet1928 Analysis & live calls on FTSE,DAX,S&P...aimed to help New traders thread. If you can get hold of him (and I haven't seen him around for a while) the real expert when it comes to P&F and computers is DaveJB who's written some excellent articles for T2W on P&F - which you can find here.

Thanks Tim, I’ll definitely have a look at the swing trading book, as my focus is mainly the S&P and stocks. I’m new to the forex side of things, so thought charting the GBP/USD hourly chart by hand would help me learn P&F charting as well as start to get a feel for how GBP/USD moves intraday. Am going to start charting my stocks portfolio EOD as well by hand.

Thanks for links. If you have anymore suggestions then they’ll certainly be welcome. 😀

 

[isatrader]

GBP/USD Hourly Point and Figure Chart

I’ve updated the P&F chart for GBP/USD.

It’s currently below the downtrend line and has just made a triple bottom sell signal in the last hour in the 15440 box. Safezone stop is currently at 15489. To get a new buy signal it would need to reverse back above 15520.

Here’s the chart

P.S. I’m still learning how to do this so let me know if you think it’s wrong.

 

[isatrader]

Re: GBP/USD Hourly Point and Figure Chart

I’ve updated the P&F chart for GBP/USD.

It’s currently below the downtrend line and has just made a triple bottom sell signal in the last hour in the 15440 box. Safezone stop is currently at 15489. To get a new buy signal it would need to reverse back above 15520.

Here’s the chart

P.S. I’m still learning how to do this so let me know if you think it’s wrong.

Price has moved above the downtrend stop of 15489.

 

[isatrader]

Re: GBP/USD Hourly Point and Figure Chart

Price has moved above the downtrend stop of 15489.

It is getting closer to an upside signal at the 15520 box. Is still below the downtrend line though and previous resistance at 15530 box.

 

[isatrader]

GBP/USD Hourly Point and Figure Chart

I think I’m using the wrong column of Os for the bearish price objective. I’ve been using the column with the signal, but from reading more it seems it’s the highest O I should use. So that was at 15650. The column had 10 Os so the calculation is a 300 point move down to 15350? Still not completely sure if this is right. Anyone have experience of this?

 

[sarnia cherie]

I taught myself P&F from Jeremy du Plessis book. It is an extremely expensive but very comprehensive book and I would thoroughly recommend it if you can get hold of a second hand copy. I have also attended a seminar given by J du Plessis on P & F for a load of city traders and it is not meant to be used in isolation. It is meant to be used as confirmation, and for targets, alongside more conventional trading methods.

 

[isatrader]

I taught myself P&F from Jeremy du Plessis book. It is an extremely expensive but very comprehensive book and I would thoroughly recommend it if you can get hold of a second hand copy. I have also attended a seminar given by J du Plessis on P & F for a load of city traders and it is not meant to be used in isolation. It is meant to be used as confirmation and targets alongside more conventional trading methods.

A friend gave me the Jeremy du Plessis book the other day, but I’m still reading the Thomas J. Dorsey book. But have been told it’s really useful.

I’m not planning to use it as a sole means of signals. But I do think it could be used on its own if I charted in multiple time frames. i.e. I was thinking of charting 1 day, 4 hours and 1 hour charts. So 1 day for long term trend, 4 hour for short term trend and 1 hour chart for entries/exits. Is an experiment, but I think an excellent way to learn point and figure by doing it by hand.

 

[isatrader]

Pattern Question

A question for anyone with some experience in this. If the current column of Xs reverses to Os and breaks the 15420 level, would the pattern be a complete Bearish Catapult?

 

[isatrader]

Diagonal Triple Bottom Pattern

The GBP/USD is close to making what looks like a diagonal triple bottom pattern on the hourly P&F chart. Price is still in an uptrend though, but supply looks to be in control for now. It will need confirmation though by other methods if it completes the pattern.

 

[isatrader]

Re: Diagonal Triple Bottom Pattern

The GBP/USD is close to making what looks like a diagonal triple bottom pattern on the hourly P&F chart. Price is still in an uptrend though, but supply looks to be in control for now. It will need confirmation though by other methods if it completes the pattern.

The pattern has completed so I’ll do a paper trade here and see how it did in the morning.

Entry: Short 1.5564 @ 2.18am
Stop: 1.5610
Target: Use safezone trailing stop for exit.

 

[Dentalfloss]

cable
hourly data input.4 months of data
50 pips by 3 reversal hilo plot
downtrend......now look at the consolidation and the support at 1.5400
so nfp tomorrrow.i have drawn a trendline/blue,from the latest low .to see the reaction,if there is strength or weakness in the dollar..

 

[isatrader]

cable
hourly data input.4 months of data
50 pips by 3 reversal hilo plot
downtrend......now look at the consolidation and the support at 1.5400
so nfp tomorrrow.i have drawn a trendline/blue,from the latest low .to see the reaction,if there is strength or weakness in the dollar..

Quick question on the blue trend line. From what I’ve been doing so far, I’ve been drawing trend lines starting from the last buy or sell signal. So I’d be drawing it from below the 29 box? Do you normally start yours below the latest support or resistance level also?

 

[isatrader]

GBP/USD Hourly Point and Figure Chart

Here’s my updated chart till just after 7pm. Just ticking up from support level at 15450.