Learning to read Price Action with P&F Charting

for the hourly close.something like 10 by 3.must be able to backfill the data when the computer is switched off.obviously there will be times when the boxes dont move.but then watch the action when europe opens.,and on to the us open.go down to a 1 minute close the hour before.something like 5 by 3
all this for the dow.chnge box sizes for the es/ndx etc
then when market opens back to youre normal routine looking for tradeable signals that suit youre time horizon
 
Quote from oraclewizard77:

I am currently long AUTH based 1st on a P & F scan.
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I must be missing something because my charts (stockcharts) don't come close to matching yours and I don't see what signal you used to enter.

I spent the all yesterday looking for stocks that had a good signal (comesurate with my level of knowledge). I am going to paper trade strickly stocks for the next 6 months and see how I do. At this point I am only using PnF signals on the charts. Weeding out the bad ones with other research will have to come later as I learn. I've only gone thru The NYSE so far and skipped all the financials and funds and probably missed a few more.
I used a 3 box reversal with traditional scaling and Hi-Low price.

BNI Buy 103.47 Stop 96
EL Buy 48.08 Stop 43
FMC Buy 67.22 Stop 60
HON Buy 59.59 Stop 54
IT Buy 23.88 Stop 18
MDS Sell 14.88 Stop 17.5
PAG Buy 20.08 Stop 18.5
PH Buy 83.59 Stop 78
PHH Buy 19.38 Stop 17
RIO Buy 39.58 Stop36
TWC Buy 29.67 Stop 24
WHR Sell 72.43 Stop 77

I still have to figure out What contract size would be best, How long to hold one that doesn't move, when to take a profit etc.
feel free to critique me if you like.
 
Signal did not occur today, it was a previous signal where AUTH broke out of down trend.

Hold period and profit targets are something I am currently still testing out with real money. I guess hold period could also be used as a time stop loss or could also be combined by stop loss based on p and f. I think you should really go real money trading since paper trading is close to useless for stock trading unless you are using it to develop a strategy. You could just do small buys say 100 shares of a stock to get your feet wet. To do P & F trading, I think you need at least $ 15,000.


Quote from flyinglead:

I must be missing something because my charts (stockcharts) don't come close to matching yours and I don't see what signal you used to enter.

I spent the all yesterday looking for stocks that had a good signal (comesurate with my level of knowledge). I am going to paper trade strickly stocks for the next 6 months and see how I do. At this point I am only using PnF signals on the charts. Weeding out the bad ones with other research will have to come later as I learn. I've only gone thru The NYSE so far and skipped all the financials and funds and probably missed a few more.
I used a 3 box reversal with traditional scaling and Hi-Low price.

BNI Buy 103.47 Stop 96
EL Buy 48.08 Stop 43
FMC Buy 67.22 Stop 60
HON Buy 59.59 Stop 54
IT Buy 23.88 Stop 18
MDS Sell 14.88 Stop 17.5
PAG Buy 20.08 Stop 18.5
PH Buy 83.59 Stop 78
PHH Buy 19.38 Stop 17
RIO Buy 39.58 Stop36
TWC Buy 29.67 Stop 24
WHR Sell 72.43 Stop 77

I still have to figure out What contract size would be best, How long to hold one that doesn't move, when to take a profit etc.
feel free to critique me if you like.
More...
 
Quote from oraclewizard77:

Signal did not occur today, it was a previous signal where AUTH broke out of down trend.

Hold period and profit targets are something I am currently still testing out with real money. I guess hold period could also be used as a time stop loss or could also be combined by stop loss based on p and f. I think you should really go real money trading since paper trading is close to useless for stock trading unless you are using it to develop a strategy. You could just do small buys say 100 shares of a stock to get your feet wet. To do P & F trading, I think you need at least $ 15,000.
More...


Yeah, it seems like you need a decent sum of money to trade P&F with stocks - you could do options but the time value is always an issue. It seems that you'd need options at leasts 2 months from where you enter, based on my observations (small sample).

I was thinking of getting into BNI at 100 but it didn't seem to have a lot of strength when I was watching it - it kept hitting a 100 and then heading back down.

Are you thinking of using options instead of just cash equity? At first I was thinking of getting 2 strikes above the current price but the problem is even if you're right and it eventually gets there, the time decay really hurts to watch. And then again, you could be completely right but wrong about the time, so I don't know whether one should be safe and pay for the extra time value of longer duration options (either in or out of the money) or just going for stocks (which I wouldn't want to do unless I could diversify across at least 10 stocks - not a possibility unless you have about 40K imo)

EDIT: actually, probably more like, AT LEAST 60K

Thoughts?
 
Quote from oraclewizard77:


Hold period and profit targets are something I am currently still testing out with real money. I guess hold period could also be used as a time stop loss or could also be combined by stop loss based on p and f. I think you should really go real money trading since paper trading is close to useless for stock trading unless you are using it to develop a strategy. You could just do small buys say 100 shares of a stock to get your feet wet. To do P & F trading, I think you need at least $ 15,000.
More...

thanks 77

I'm planning on consolitading some of my investment accounts after a couple months and doing just that. Should have about $40,000 to start. Got more tied up in things I don't want to get out of just yet. Bought and sold stocks before, but just on the dartboard method. Biggest probem I always had, was the ostrich syndrome. When things went south I'd bury my head in the sand till it went away. Sometimes at a good loss. Hopefully this Pnf will at least get me headed in the right direction. If not, at least I'll have stops to take little losses while I learn.
 
Quote from yayt:


I was thinking of getting into BNI at 100 but it didn't seem to have a lot of strength when I was watching it - it kept hitting a 100 and then heading back down.
More...

BNI is one I probably wouldn't trade with real money when I first start out, because it would take up too much of my account and too far $ wise to the stop, but I wanted to include some from all ranges. I'd probably be more comfortable trading 100 shares of stocks under $50 at first.
I'm also thinking of scaling my sizes relative to the stock price.
ie. 50 shares of $100 stock, 100 shares of $50 stock and 200 shares of $25 stock.
 
BNI: Regarding your trade idea. I would not trade it at these values. I would love to here the reasoning and see the charts if some one has a different perspective than me. I have an open mind and enjoy discussing point and figure charting.
 

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EL: Regarding your trade idea. I would not trade it at these values. I would love to here the reasoning and see the charts if some one has a different perspective than me. I have an open mind and enjoy discussing point and figure charting.
 

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FMC: Regarding your trade idea. I would not trade it at these values. I would love to here the reasoning and see the charts if some one has a different perspective than me. I have an open mind and enjoy discussing point and figure charting.
 

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