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Learning to read Price Action with P&F Charting
- Thread starter HolyGrail
- Start date
Quote from dentist007:
ialwayslearn:regarding youre query on
box sizes.you use the right box size that shows the volatility of the instrument.
basically you must not have columns that are too long.this means you have to go up a box size to shorten any long columns.vice versa if the columns are too short
increase/decrease the box size increase/decreases youre time horizon
so u might find that 0.2% works well for fx.and lower for bond futures.stocks 1% by 3 for med term.etc etc
Thanks dentist007. Given your reply and not just regarding forex, but any market, would it help to find the Average True Range of the time frame and use that as a GUIDE to selecting box size?
Or is that flawed in it's approach?
u might want to try 1 box reversal charts.you can take some good horizontal counts from intraday data
ialwayslearn:
why are you bothering with atr.this really has nothing to do with p/f.it is a calculated line
u must look at the colun lengths.long columns make the chart unreadable.check out the book.it is a free preveiw on google
why are you bothering with atr.this really has nothing to do with p/f.it is a calculated line
u must look at the colun lengths.long columns make the chart unreadable.check out the book.it is a free preveiw on google
HG - What are your thoughts on range bars? I have heard that they are similar to P&F charts, some say they are an extension thereon.
Thoughts?
Thoughts?
Quote from shortorlong:
HG - What are your thoughts on range bars? I have heard that they are similar to P&F charts, some say they are an extension thereon.
Thoughts?
I have no thoughts on range bars. I like the method I am trading, and there is no way I would ever consider changing methods unless I have a 7 or 8 month losing streak.
Dentist007
You had said that you need to choose a box size that captures the VOLATILITY of the instrument.
I was thinking that using ATR, H-L, etc. might be a more objective way of determing box size for a given market rather than saying a column is "too high" or "too low".
I get the concept of what you are saying. I am not looking to re-invent the wheel.
This has been a great thread so far and I was just throwing out some ideas to consider based on what you said about volatility.
You had said that you need to choose a box size that captures the VOLATILITY of the instrument.
I was thinking that using ATR, H-L, etc. might be a more objective way of determing box size for a given market rather than saying a column is "too high" or "too low".
I get the concept of what you are saying. I am not looking to re-invent the wheel.
This has been a great thread so far and I was just throwing out some ideas to consider based on what you said about volatility.
Quote from Ialwayslearn:
Dentist007
You had said that you need to choose a box size that captures the VOLATILITY of the instrument.
I was thinking that using ATR, H-L, etc. might be a more objective way of determing box size for a given market rather than saying a column is "too high" or "too low".
I get the concept of what you are saying. I am not looking to re-invent the wheel.
This has been a great thread so far and I was just throwing out some ideas to consider based on what you said about volatility.
Just my opinion, but I think ATR WOULD be an excellent way to determine box size.
ialwayslearn:
first consider what reversal u want ot use.
3box give good vertical counts and also good horizontal counts from a hi or lo .main ones
1 box give good horizontal counts.no verticals
to do good analysis u need to look at both
vertical counts do not work well on 2,4 and 5 box counts
next consider youre time horizon.longer /med then daily data either close only or hi/lo plot.best to choose close to start with.
then by starting at a high box size u go down box sizes to expose the volatility and then look for trading signals
45 degree trendlines are the strongest on 3 box reversal charts
p/f charts allow you to extract the most information about the instrument than any other charting method
first consider what reversal u want ot use.
3box give good vertical counts and also good horizontal counts from a hi or lo .main ones
1 box give good horizontal counts.no verticals
to do good analysis u need to look at both
vertical counts do not work well on 2,4 and 5 box counts
next consider youre time horizon.longer /med then daily data either close only or hi/lo plot.best to choose close to start with.
then by starting at a high box size u go down box sizes to expose the volatility and then look for trading signals
45 degree trendlines are the strongest on 3 box reversal charts
p/f charts allow you to extract the most information about the instrument than any other charting method