Learning to read Price Action with P&F Charting
- Thread starter HolyGrail
- Start date
I look forward to your journal. My desire to learn P n F stems from learning to trade with price and volume like Wyckoff. I presume you are using a 3 box reversal instead of 1, although I haven't read all of your thread yet.
Having watched some videos on Dorsey P n F seems a very simple and logical way to trade.
Having watched some videos on Dorsey P n F seems a very simple and logical way to trade.
Hi I am curious what charting tool youre using..
thanks
SS
thanks
SS
Yes we are using the 3 box reversal. Welcome to the thread.
Ok here is one of the most powerful signals(catapults are as well along with triangles).
It is called the bullish and bearish signal reversed. Now the rules on this signal is that you must have seven TOTAL columns of lower lows and lower highs. So you can have 4 lower high columns and 3 lower low for a bearish signal reversed or vice versa for a bearish signal reversed.
Normally once that breakout occurs for the bottom or the top all hell breaks loose.
Ok here is one of the most powerful signals(catapults are as well along with triangles).
It is called the bullish and bearish signal reversed. Now the rules on this signal is that you must have seven TOTAL columns of lower lows and lower highs. So you can have 4 lower high columns and 3 lower low for a bearish signal reversed or vice versa for a bearish signal reversed.
Normally once that breakout occurs for the bottom or the top all hell breaks loose.
OK, now for another powerful signal that if you are wrong YOU CAN REVENGE TRADE AMD STILL MAKE MONEY.
It's the triangle, and occasionally you will get some false breakouts. but this is only occasionally and when that occasion occurs you are almost a guaranteed winner on the reversal.
It's the triangle, and occasionally you will get some false breakouts. but this is only occasionally and when that occasion occurs you are almost a guaranteed winner on the reversal.
OK, the long pole up and long pole down I am not going to show because I already mentioned it. It is at least 20 consecutive boxes up or down.
You buy on the reversal. So if a stock just went down to 25 dollars from at least 45 dollars without a reversal you can now start putting orders in at 28 dollars for a buy. If it goes down to 24 place your order at 27 etc.
This is not my favorite signal. Remember you are wrong if you get an immediate reversal that turns into a double bottom sell signal so your stop has to be 4 dollars. As I mentioned previously, your target minimim would be at least .38 of the number of boxes or 8-9 boxes.
You buy on the reversal. So if a stock just went down to 25 dollars from at least 45 dollars without a reversal you can now start putting orders in at 28 dollars for a buy. If it goes down to 24 place your order at 27 etc.
This is not my favorite signal. Remember you are wrong if you get an immediate reversal that turns into a double bottom sell signal so your stop has to be 4 dollars. As I mentioned previously, your target minimim would be at least .38 of the number of boxes or 8-9 boxes.
OK now for something you will not read in any book. It is what I call the failed double top buy signal or the failed double bottom signal.
If you trade this signal only for the rest of your trading days I PROMISE YOU WILL BE PROFITABLE.
You have your great failed signals, and you have you SUPER GREAT failed signals.
Here is a SUPER GREAT failed double top.
If you trade this signal only for the rest of your trading days I PROMISE YOU WILL BE PROFITABLE.
You have your great failed signals, and you have you SUPER GREAT failed signals.
Here is a SUPER GREAT failed double top.