Learning to read Price Action with P&F Charting

[sharp10]

HG, Thanks very much for the Thread.
Since I have never used P&F charts before, what are the settings to plot on a daily chart. And can they be used for shorter time frames?

Thanks again.

 

[HolyGrail]

I forgot to mention what the numbers in the columns represent in the charts. It just represents the month. You have 1-9 which represent January thru September, and you have a b c which is October, November, and December.

 

[atonix]

This is all very interesting. I've never taken the time to learn P&F, but I think I will now. Thanks.

 

[HolyGrail]

Quote from sharp10:

HG, Thanks very much for the Thread.
Since I have never used P&F charts before, what are the settings to plot on a daily chart. And can they be used for shorter time frames?

Thanks again.

Time is of no consequence on a pnf chart. A daily chart looks exactly the same as a monthly chart. The only difference is box sizes that you choose to use. If you use the standard box sizes a monthly chart will look the same as a daily chart.

You should not use the standard box size for intraday trading.

For example on ES the standard is a 20 point box. This is fine for daily or weekly trading but not for intraday.

On intraday, I actually use three chart box sizes. .5, .75, and 1.0

 

[BosyBillups]

What are your average holding times for each position? Looks like they can be held for weeks if the movement is small.

 

[sharp10]

Quote from HolyGrail:

Time is of no consequence on a pnf chart. A daily chart looks exactly the same as a monthly chart. The only difference is box sizes that you choose to use. If you use the standard box sizes a monthly chart will look the same as a daily chart.

You should not use the standard box size for intraday trading.

For example on ES the standard is a 20 point box. This is fine for daily or weekly trading but not for intraday.

On intraday, I actually use three chart box sizes. .5, .75, and 1.0

Thanks HG, I guess I better start from the basics.
Look forward to your posts.

 

[HolyGrail]

Quote from BosyBillups:

What are your average holding times for each position? Looks like they can be held for weeks if the movement is small.

Typically I hold the stock until target or 5 weeks whichever comes first.

Intraday trades very rarely last more than 10 minutes.

 

[HolyGrail]

A word of caution. Taking every P&F buy or sell signal will absolutely guarantee your failure. You have to trade signals with high probabilities. We will get into that as well.

 

[5Pillars]

WOW - a very civil and yet educational thread at ET, there is hope here after all!!! :eek:

LOL!!!

HG - thanks for the BSC chart.

 

[HolyGrail]

Quote from 5Pillars:

WOW - a very civil and yet educational thread at ET, there is hope here after all!!! :eek:

LOL!!!

Don't count on it. They are just waiting in the wings.