Learning to read Price Action with P&F Charting

I read through this thread, but one question I still have is where do you get your stock ideas? Do you run a stock scan for both bullish or bearish stocks?

How is the scan designed? I have been trading stocks using fa for awhile, but maybe using some price action will help me become more profitable.

One other thought, do you think it would be worth it to say buy a vertical put option on a stock that gives you a sell signal and/or buy a vertical call option on a stock that gives you a buy signal? Or because you will be stuck in the option till time expires, it is not worth it?
 
There is a scanner in bulls eye broker that looks for specific signals. I prefer to look at charts and anticipate breakouts before they happen. I look at 824 charts every day. As far as options are concerned, I have no reason to believe it couldn't work.
 
Ok, thanks. One of the accounts that I manage is in a big broker's account that does not allow shorting and charges around $ 35 commission. So I think I will need to look for just long stock trades when the market is going up, and then buy one of those negative index funds like the QID when the market is going down.

I am currently holding some long term positions that I will need to trade out of, but then I will try the strategy with a portion of the account say 30% once I am able to free it up.
 
holy grail...may i congratulate you on the excellent rule .
waiting for the second buy/sell signal in succession.
you are right.it keeps you out of the chop
many thanks
 
Hey thank you for your contribution to this thread as well Dentist.

Take a look at another thing I have been experimenting with for the last two days with success. I have been taking the first signal if and only if there is no 0 column resistance close by, and we are only dealing with the previous x column high. It seems that in a very high percentage of cases (so far 12 out of 13) the target of at least 1 box below last high x column will be reached.

An example is given below.
 

Attachments

yes.so the format being to discount any res columnsif they are not close by.ie more than 3 columns away.if you are long.
vice versa if you are short
was the bullish % in a breakout buy mode.ie did you have the wind behind you on that trade.?
 
hey all,
Ive been looking into using pnf charting as a basis for longer term, position trading, where I'd want to capture a couple (or more) dollars as opposed to a few cents (relatively) trading intraday .
While I've only read posts regarding intraday trading , do you think this method would be conducive to longer term trading ?

Thanks again for the insights holy Grail and dentist and everyone else !


h
 
I have been doing this with es and nq the last two days. The chart I posted was just a quick example I could find in stocks.

Although it would be an added bonus to have bullish percent and relative strength on your side, I believe it will hit the target regardless. I obviously still have more work to do on this, but it looks VERY promising.

If there seems to be any nuances that need to be adhered to I will definitely come back to this thread.

When you are trading the emini's today take a look for this type of price action and see if you notice the same things that I did.
 
You must log in or register to reply here.
Back
Top