Learning to read Price Action with P&F Charting

Quote from HolyGrail:



If any of this helps at least one trader then I will feel good about starting this journal.
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count me too!, you have finally allowed me to discover a method where i am not constantly saying to myself "huh?" or "i wonder what next", love it hope to learn it more in depth over the coming time.

agree with sharp the GOOG move today was nice, i noticed the initial buy yesterday actually.
 
Quote from staffpro:

count me too!, you have finally allowed me to discover a method where i am not constantly saying to myself "huh?" or "i wonder what next", love it hope to learn it more in depth over the coming time.

agree with sharp the GOOG move today was nice, i noticed the initial buy yesterday actually.
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The question is, what kind of STOP would you need?
 
was the target strictly based on price resistance?

Quote from HolyGrail:

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:

The question is, what kind of STOP would you need?
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well if you did the "one below last o" column strategy HG mentioned then 416 would be your initial stop and then i guess as it moves up you would trail up always 4 boxes behind?

for a 400$ stock like goog i am using 4boxsize/3rev

ohh and as a target are we looking at the high of the last x column in that case 530?



SharpChartv05.ServletDriver
 
I hope some of you trading es caught the nice failed double top on the .5. It then created a double bottom on the .75 and 1.0. The .5 is the chart on the left.

Me like a jerk had his button trader set for a scalp instead of a normal target and got stopped out after 3/4 points. Yes, it's true, I do make mistakes.:D
 

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Remember if you are trading Google based on daily charts for swing trades you need to use a 10 point box size above 500 and a 5 point boxsize below 500 so it gets complicated. This is also why I use bulls eye trader become it does this for you automatically.

What I would do is look at the straight downtrend. Take .4 times the number of boxes in the downtrend and assume google will reach that for a retracement level.

We had a 20 box downtrend. 20 * .4 is 8 boxes. 20 * .5 is 10 boxes if we have a 50% retracement. Based on that we have already hit our target and I would be out of the stock. It is still in a downtrend. Now if we have a pullback and then a new double top buy signal I would consider buying it again.
 

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Quote from HolyGrail:

I hope some of you trading es caught the nice failed double top on the .5. It then created a double bottom on the .75 and 1.0. The .5 is the chart on the left.

Me like a jerk had his button trader set for a scalp instead of a normal target and got stopped out after 3/4 points. Yes, it's true, I do make mistakes.:D
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Terrific thread HG. I started following P&F charts on ER2 last summer, using entry on retracement to a moving average.

Regarding the failed DT on the .5, will you still take the short, if the DT is broken by more than one X? In this case, if price had gone to 1360.5 or more, instead of just to 1360.0, would you have still taken the short at 1357.5?

Thank you.
 
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