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Learning to read Price Action with P&F Charting
- Thread starter HolyGrail
- Start date
Thank you HG. The s&p 500 seems to be the most used performance benchmark.
Look at this page for BP charts, it's pretty convenient: http://stockcharts.com/charts/candl...SPX,$BPINDU,$BPDISC,$BPSTAP,$BPENER,$BPFINA|E
Look at this page for BP charts, it's pretty convenient: http://stockcharts.com/charts/candl...SPX,$BPINDU,$BPDISC,$BPSTAP,$BPENER,$BPFINA|E
a word of caution here.
the bullish per cent charts are calculated using the chartcraft method. 2% is a longer term box size.so the chart can print a double-top by virtue of a high reading on one day.this does not mean for sure there is a breakout,especially in these volatile markets.the best way round is to go to a 1% box size chart.ie the number of stocks in the index that have a bullish pattern on that box size.time the entry on that.vice versa on a downtrend
the bullish per cent charts are calculated using the chartcraft method. 2% is a longer term box size.so the chart can print a double-top by virtue of a high reading on one day.this does not mean for sure there is a breakout,especially in these volatile markets.the best way round is to go to a 1% box size chart.ie the number of stocks in the index that have a bullish pattern on that box size.time the entry on that.vice versa on a downtrend
Here is another catapult that appeared today. I don't like it as much as Emerson, but nevertheless it could be a good one.
On a side note, I have decided to swing trade only(maybe a couple of day trades). I am so far behind in my work at the office it is embarrassing. Shame on me.
On a side note, I have decided to swing trade only(maybe a couple of day trades). I am so far behind in my work at the office it is embarrassing. Shame on me.
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Quote from HolyGrail:
I thought I would post this chart. I bought this yesterday and we have a very nice chart in a bullish catapult, and a double top buy on relative strength.
How long would you consider a stock like that buyable. (If I were to find that stock Friday, or even late next week and it was still about the same price would you still think it worth buying.)
Right now both stocks are still below the price that triggered the buy, so they are still buys right now. But to answer your general question I wouldn't buy it more than 1 box over the trigger, and if I did that I would only buy half and look for a slight pullback for the other half.
OK. Since I am not using any other indicators at this time, I was wondering if time movement has any bearing on chance of a good trade.
ie. EMR had an 8 box movement in May before the breakout, would you still take the trade if the box before the breakout had a 2 or 3 in it.
ie. EMR had an 8 box movement in May before the breakout, would you still take the trade if the box before the breakout had a 2 or 3 in it.
Firstly, H.G. thanks for posting some of your swing trade ideas. It really helps the learning process for all of us P&F chartists.
Regarding ticker symbol EMR. My methodology doesn't agree with your trade idea. I'm really excited about this because this may become a genuine learning experience for me if my methodology turns out to be wrong.
1. I believe EMR is at resistance and I would day trade it with a short bias
2. I don't believe the broad market has tipped its hand yet. I don't see more than 50/50 probability at these levels that it will experience a major upside breakout. I see more of a consolidation. I would not be buying individual stocks at resistance just yet.
3. My methodology would allow me to take a long bias when the retracement to 54.00 recently took place
4. I would terminate my long bias at about 57.00
5. I think the 54.00 to 57.00 was the meat of this move and I would move on to another stock at these levels.
I hope you disagree with all of my take on this stock. That is the real way to learn. Constructive disagreement for the sake of true knowledge.
Regarding ticker symbol EMR. My methodology doesn't agree with your trade idea. I'm really excited about this because this may become a genuine learning experience for me if my methodology turns out to be wrong.
1. I believe EMR is at resistance and I would day trade it with a short bias
2. I don't believe the broad market has tipped its hand yet. I don't see more than 50/50 probability at these levels that it will experience a major upside breakout. I see more of a consolidation. I would not be buying individual stocks at resistance just yet.
3. My methodology would allow me to take a long bias when the retracement to 54.00 recently took place
4. I would terminate my long bias at about 57.00
5. I think the 54.00 to 57.00 was the meat of this move and I would move on to another stock at these levels.
I hope you disagree with all of my take on this stock. That is the real way to learn. Constructive disagreement for the sake of true knowledge.