Learning to read Price Action with P&F Charting

Quote from sharp10:

HG, others,
how do you scan for possible set ups that are forming?
For stocks that is.

Thanks.
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I use bulls-eye trader. It has a scanner but I must admit I don't use it because my best trading signal is not a standard pnf signal so there is no scan for it.

I look through a minimum of 300 charts a night. Normally 800. When you are looking for one or two patterns it does not take long to do this. I flag all the ones that meet my criteria and decide which has the best risk/reward and trade it.

Bulls eye trader is only good for eod and it reads yahoo stock data, metastock,tc2000, and amibroker files.
 
Quote from staffpro:

also wondering this, like how did you find jcg or cost just randomly typing in tickers and looking, or some kind of screener?

thankyou!
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see above
 
OK, now a trade for you scalpers who don't want to risk as much per trade.

Please note the attached chart as of 11:41 cdt. From left to right we have a .5, .75, and 1.0 chart. Please note that all charts were close to being bullish. We had a triple top on the .5, a double top on the .75, and a double top on the 1.0.

NONE OF THE CHARTS WERE ACTUALLY IN BUY MODE AT THIS TIME. So what to you do?

I find out what it would take for the smallest chart (the .5) to be put into buy mode. I KNOW that the .75 will trigger a 1/2 point higher than the .5. I split the difference and place a long order 1/4 of a point over the .5 chart trigger.

I also look at the possible failure of these tops, but I am not concerned with that trade yet because if the long trade moves it will move pretty quick. I have time to look at the short side if this trade fails.



On a side note, I did take this trade with an 8 tick target which was hit.

I don't necessarily like this trade because my buy point was actually the high of the day when it was hit. Whenever you buy into the high you have enormous chances for QUICK reversals. Even though the trade worked I would have felt better if we weren't near the highs. I may have even increased my target to 3 points.

I entered the trade with a stop two ticks below the last tick low which was would compute to 1358.50. I entered the trade at 1359.25 (missed the 1359 which was optimum) and exited at 1361.25.

Ok back to work and trading. Good Luck
 

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Quote from sharp10:

I'll know if my platform is displaying these charts correctly by your answer. Thanks HG.
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if your using high/low method then yes that is BUT you are also using .5 boxes for a 30$ stock and from my understanding that produces more signals so you gotta watch out (check out the 1box size chart), all the charts HG has been showing us so far are 1$ box size (depends on what the stock trades at) 3 box reversal, close data method

here is the chart for 1 box size/3rev looks like a setup for bearish signal reversed when we get another column of x's going



SharpChartv05.ServletDriver
 
Quote from staffpro:

if your using high/low method then yes that is BUT you are also using .5 boxes for a 30$ stock and from my understanding that produces more signals so you gotta watch out (check out the 1box size chart), all the charts HG has been showing us so far are 1$ box size (depends on what the stock trades at) 3 box reversal, close data method

here is the chart for 1 box size/3rev looks like a setup for bearish signal reversed when we get another column of x's going
Thanks man.
Yes I did realize I was using that. Better off sticking to the $1 size box.


SharpChartv05.ServletDriver
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A nice Double TOP breakout happened today in GOOG. Pretty awesome move.

I guess I'm starting to get the basics, waiting on couple books to review more stuff.

Thanks HG for introduce me to this technique.
 
Quote from sharp10:

A nice Double TOP breakout happened today in GOOG. Pretty awesome move.

I guess I'm starting to get the basics, waiting on couple books to review more stuff.

Thanks HG for introduce me to this technique.
More...

only have a few secs but I wanted to mention that you should also keep a journal of every trade you make so you can get an idea of the success rates of each pattern. Try to take screenshots of the trade right after you enter the trade. It is very helpful. I always name my target in the journal, and the total number of ticks from my entry I could have made if I stayed in the trade to the very top. I then analyze whether there was some way I could have predicted it going over my target(perhaps looking at a higher box chart?)

If any of this helps at least one trader then I will feel good about starting this journal.
 
Quote from HolyGrail:

only have a few secs but I wanted to mention that you should also keep a journal of every trade you make so you can get an idea of the success rates of each pattern. Try to take screenshots of the trade right after you enter the trade. It is very helpful. I always name my target in the journal, and the total number of ticks from my entry I could have made if I stayed in the trade to the very top. I then analyze whether there was some way I could have predicted it going over my target(perhaps looking at a higher box chart?)

If any of this helps at least one trader then I will feel good about starting this journal.
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HG, I think you have already helped a few people, but of course I'm speaking for myself.
Hope you keep the thread going.
 
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