Learning to read Price Action with P&F Charting

funny though if you use high/low data you get many more breakouts/signals but alot of false ones also, and in that case COST is a buy at 64 even not 67 with 1.0 box size/3reversal. ANd yeah i'm also wondering what is your course of action if you miss an entry, buy on a pullback maybe if the risk/reward looks good enough? Also, i know that stocks move independant of one another but HG how would you say your system or the pnf system fairs in general in downtrending markets? do you tighten your stops/ watch over everything more diligently?

Thanks HG, exciting day today, putting all my new knowledge to work for the first time.

edit: i also stumbled upon a website that ran a simulation and close data gathered more than double profits than high/low data over a 5 year period, very interesting.
 
I pulled the chart of JCG on stockcharts.com and show the breakout buy signal at $47.

Do I have that correct?

Thanks for the input.
 
Quote from sharp10:

I pulled the chart of JCG on stockcharts.com and show the breakout buy signal at $47.

Do I have that correct?

Thanks for the input.
More...

make sure you are using 1 bos size/3 reversal your breakout for jcg should be at 45 ALSO interesting to note the high/low chart is in agreeance with the close data chart, my conclusion is that thats another + for this situation.

IF you use high/low data YES the breakout is at 47


SharpChartv05.ServletDriver


here is the high/low chart

SharpChartv05.ServletDriver


edit sorry you were looking at the high/low chart in that case yes the buy is at 47.
 
thanks StaffPro.

I'm trying to plot same chart on my platform, but I am not sure why I'm not getting the same visual, even with the same settings: $1 and 3 box reversal.

Thanks.
 
Quote from staffpro:

edit: i also stumbled upon a website that ran a simulation and close data gathered more than double profits than high/low data over a 5 year period, very interesting.
More...
Mind providing the link?
 
I don't have time to post right now but I wanted to mention something.

If you use a high/low chart then you must trade based on that chart. Since the high/low chart does NOT show a failed double bottom, I would not trade the stock.

I know that doesn't make sense, but all I am saying is the stock would not have even been on my radar because it did not meet the criteria.
 
Quote from HolyGrail:

I don't have time to post right now but I wanted to mention something.

If you use a high/low chart then you must trade based on that chart. Since the high/low chart does NOT show a failed double bottom, I would not trade the stock.

I know that doesn't make sense, but all I am saying is the stock would not have even been on my radar because it did not meet the criteria.
More...

nice, thanks i didn't notice that. guess i will stick with close data just to keep things simple/see what i like.

here is the highlow/vs close for the person that asked http://www.fdcusers.com/T2W_PandF_20050909.htm

according to him he made more on close with less trades and less drawdown, then again we don't know weather or not he used the same stops/targets as HG so this is just to throw it out there and discuss about. But imo it is probably true because if you compare any highlow chart to a close chart you are bound to get more "up/downess" (can't think of a word) and consequently more buy/sell signals
 
Quote from sharp10:

HG,
let's assume you miss the entry on JCG.
What would you do then if anything, or you just let it go?

Thanks.
More...

Hell, I even missed my own trade. NORMALLY, if I am using a daily chart I would have placed a conditional trade at greater than or equal to 45.00 the NIGHT before the trade with my broker.

I was so tired last night after being up since 5:30 am that I failed to do that.

Now to answer your question. My preference is to enter the trade no more than 1/2 of a box size from my trigger. Should the stock retrace today to 45.50 I would be a buyer. If not, I forget about it and move on to the next stock. There are always plenty of stocks that are giving buy or sell signals.
 
Quote from HolyGrail:

Hell, I even missed my own trade. NORMALLY, if I am using a daily chart I would have placed a conditional trade at greater than or equal to 45.00 the NIGHT before the trade with my broker.

I was so tired last night after being up since 5:30 am that I failed to do that.

Now to answer your question. My preference is to enter the trade no more than 1/2 of a box size from my trigger. Should the stock retrace today to 45.50 I would be a buyer. If not, I forget about it and move on to the next stock. There are always plenty of stocks that are giving buy or sell signals.
More...

Thanks HG.
Appreciate all your postings.
 
You must log in or register to reply here.
Back
Top