Learning to read Price Action with P&F Charting

[dentist007]

goog 5$ box size.1 box reversal.horizontal counts.price in a triangle.could break either way

 

[HolyGrail]

The trade was just a scalp for two points and it worked. All charts again were in agreement so I just waited for the .5 to trigger.

 

[HolyGrail]

I also just got into JCG at 45.67

 

[HolyGrail]

Quote from sandygray66:

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.

No I would not. Based on my experience it needs to surpass by only box or be equal to the last column to get the best trade.

Welcome to the thread, and it is nice to see a fellow P&F trader. I knew there had to be some of you out there.

 

[sandygray66]

Quote from HolyGrail:

No I would not. Based on my experience it needs to surpass by only box or be equal to the last column to get the best trade.

Welcome to the thread, and it is nice to see a fellow P&F trader. I knew there had to be some of you out there.

I've done several searches over the past year to see what people have discussed about P&F charts, but found very little.

To further complicate my question to you , since you use 3 charts for ES scalps, 1 box DT reversal short entry on the 1.0, would be a 2 box DT entry reversal on the .5. Would you therefore, not take 1 box DT reversal short entries on the 1.0 x 3 chart, since it would be a 2 box on the 0.5 x 3?

I've never looked at reversal entries like this but they make a lot of sense. In general, it seems the most profitable entries occur when the most stops are being taken out to feed the direction of your trade. Your DT reversal method seems to fit exactly into this paradigm!

 

[trader56]

Quote from HolyGrail:

Well before I go to bed we can do a live trade for tomorrow.

J Crew. Symbol JCG

this stock is currently in a reversal off of a double bottom failure. this stock doesn't have much movement so I don't know how long it will take to move up, but it is a buy at 45.00

Good night and good trading.

Just got back to the tread, HG.

A quick question:
Is this the Double Bottom failure at 34.00 or the most recent at 40.00?

Assumming the two points I'm looking at are, in fact, the double bottoms.

Thanks again!

 

[HolyGrail]

Quote from trader56:

Just got back to the tread, HG.

A quick question:
Is this the Double Bottom failure at 34.00 or the most recent at 40.00?

Assumming the two points I'm looking at are, in fact, the double bottoms.

Thanks again!

It is the reversal from the 40 dollar area. We don't know it is a failure though until it gets to 45.

 

[HolyGrail]

Quote from sandygray66:

I've done several searches over the past year to see what people have discussed about P&F charts, but found very little.

To further complicate my question to you , since you use 3 charts for ES scalps, 1 box DT reversal short entry on the 1.0, would be a 2 box DT entry reversal on the .5. Would you therefore, not take 1 box DT reversal short entries on the 1.0 x 3 chart, since it would be a 2 box on the 0.5 x 3?

Basically on these scalps I look for trades where it will take 1 box FROM ALL THREE CHARTS to go into a sell or buy signal. It is actually possible for a sell signal to appear on a 1.0 before it appears on a .5.

I look at all three and determine which one will go into a sell signal first. If it is the 1.0 I completely manage the trade based on the 1.0 chart. That means a 4.0 point stop, and my target will be totally based on the 1.0 chart.

edit:
You don't have to set your stops based on the 1.0 chart unless you are fairly certain your target has at least a 1 to 1 relationship to your risk.

I don't like these scalps even though I made money on all three today. They are just not as good as the other signals, and the targets almost always have to be fixed. When I trade them I only trade 1 contract.

 

[Ialwayslearn]

HG

Thank you so much for your time and willingness to share what you've learned!

 

[sharp10]

Quote from HolyGrail:

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.

Thanks HG. Much appreciated.