Learning to read Price Action with P&F Charting

Well one thing is for sure. We are not going to see it get to that target on an intraday basis. Plus, this move has not retraced at all, so we are going to take a lot of heat.

I find the pnf price projections work pretty well if based on a longer term chart(higher box size) from a significant pivot point. Every time you get a new pnf signal on your chart you will get a new price target based on the very last pattern. Therefore you will get all kinds of weird price projections.
 
Here is some food for thought. What if you have a stock whose projection is that it is going to zero. Would or could that indicate a bottom?

Right now AMD is projected to go to zero.
 
It'd be interesting to see the charts of stocks that actually went to zero before the fact.

For AMD, at some point INTC will just give them a cash infusion to avoid the regulators. :D

Quote from HolyGrail:

Here is some food for thought. What if you have a stock whose projection is that it is going to zero. Would or could that indicate a bottom?

Right now AMD is projected to go to zero.
More...
 
I'm also curious if anyone bought any UPS today. We discussed that it would be a buy at 74 with a failed double bottom sell signal and a new triple top.

I've had my order in for a week, and wondered why it didn't trigger today. I had a stinking typo on my order and inadvertantly set the price at 75.00.
 

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I bought UPS, ESRX and BBH today.

TMA has also been projected to go 0 for some time now. Without backtesting data, I just don't know how much we can trust this "box counting" method.
 
HolyGrail,

Thanks for the great thread.

Are you still using Close or did you switch to High/Low?

If you use Close, how do you set stops? Wouldn't the High or Low price trigger it?

Thanks for your help!
 
Quote from HooLee:

I bought UPS, ESRX and BBH today.

TMA has also been projected to go 0 for some time now. Without backtesting data, I just don't know how much we can trust this "box counting" method.
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Good call on BBH(imo). I think you will probably have a pullback on esrx which could go all the way to 60, but it is a nice pattern as well.

In terms of box counting I will tell you something I did find to be somewhat true. The horizontal count is a more conservative count, and one which I would consider to be a more reliable count. There are times that you only have a long vertical count to work with so it is that or nothing. One thing is for sure. Targets are not straight up so you always have to figure good buying points to lower your risk. This is why I prefer to enter a pattern after a 3 box reversal. It has the least amount of risk.
 
Quote from cclee:

HolyGrail,

Thanks for the great thread.

Are you still using Close or did you switch to High/Low?

If you use Close, how do you set stops? Wouldn't the High or Low price trigger it?

Thanks for your help!
More...

I have switched exclusively to high low data. My stops are always based on what it would take to turn a bullish pattern bearish or vice versa.
 
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