Learning to read Price Action with P&F Charting
- Thread starter HolyGrail
- Start date
very true; both of these entries were based on intra-day breakouts, and I liked the longer-term movement of these stocks so I pulled the trigger.
is this not a reliable way to enter these stocks?
for now I'm just stepping into the water, but I'm thinking of trading intraday with ~5 ATM contracts and position trading with 1-2 contracts
For intra-day I'm looking at triple, quadruple top breakouts/breakdowns on 25 cent box size, and triple/quadruple top breakouts/breakdowns on 1 dollar box size
is this not a reliable way to enter these stocks?
for now I'm just stepping into the water, but I'm thinking of trading intraday with ~5 ATM contracts and position trading with 1-2 contracts
For intra-day I'm looking at triple, quadruple top breakouts/breakdowns on 25 cent box size, and triple/quadruple top breakouts/breakdowns on 1 dollar box size
longer term chart might be of some use
holygrail
great thread thanks for your efforts, learning some new ideas even though I always use pnf as a basis for my trading. On XTO ( using stockcharts daily) I have found entering early, before a double top break is dangerous, xto reminds me of my last before the break trade CMED, I entered around 57.50 only to be stopped out on the next colum of ooo's. I know it's obvious after the fact but at the time CMED looked and felt unstoppable. Anyways my rule is wait for confirmation to lower your risk then find a corrlated stock and buy otm put , sort of a modified pair trade in case things go horribly wrong ( again reducing the risk )you give up some profit buying put/call in opposite direction but my trading record over the years is spotted with occasional heavy losses right through my stops.
my 2 cents
great thread thanks for your efforts, learning some new ideas even though I always use pnf as a basis for my trading. On XTO ( using stockcharts daily) I have found entering early, before a double top break is dangerous, xto reminds me of my last before the break trade CMED, I entered around 57.50 only to be stopped out on the next colum of ooo's. I know it's obvious after the fact but at the time CMED looked and felt unstoppable. Anyways my rule is wait for confirmation to lower your risk then find a corrlated stock and buy otm put , sort of a modified pair trade in case things go horribly wrong ( again reducing the risk )you give up some profit buying put/call in opposite direction but my trading record over the years is spotted with occasional heavy losses right through my stops.
my 2 cents
Good advice Holy Grail, and dentist/blue, and everyone else
What do you guys think of increasing commitment after, say, a pullback of X% as long as the longer term trend is still intact?
The only thing is that this would obviously increase my cost basis and if (please no) it gapped down I would be a lot more exposed.
For example, I got in at 83 and saw a high of 86, if it were to get to 85 tomorrow on another intra-day breakout, do you think it would be too risky to get onto another contract?
Obviously these 1-2 contracts are small potatoes but after some practice trading the P&F charts I'd like to increase size.
I realize that everyone has different trading styles but I value all your inputs
What do you guys think of increasing commitment after, say, a pullback of X% as long as the longer term trend is still intact?
The only thing is that this would obviously increase my cost basis and if (please no) it gapped down I would be a lot more exposed.
For example, I got in at 83 and saw a high of 86, if it were to get to 85 tomorrow on another intra-day breakout, do you think it would be too risky to get onto another contract?
Obviously these 1-2 contracts are small potatoes but after some practice trading the P&F charts I'd like to increase size.
I realize that everyone has different trading styles but I value all your inputs