Learning to read Price Action with P&F Charting

updata have just added some indecators based on p/f columns.they only work on log scale charts.ie 1% box size and 3 box reversal
as you know p/f has o time scale .so the indecators are based on column lengths.the indecator will not match up to the p/f chart normally.so the measurement is taken by the column length.
so you can now see overbought/oversold and divergences.the same as you would see on a bar/candlestick chart
so there can be lower indecators like macd,rsi obv and directional movement all based on column lengths
enclosed is a chart of admiral insurance a uk stock with a macd indecator.setting are 6/13 and 9 as signal.all exponential.it does give you more information
only tried it out today.so early days for this
 

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there is a sell signal on the s&p500,5point hilo.3 box reversal chart..eod data.the macd is 12,26/9.the ma is based on column lengths.
so i will watch the outcome and see how good this new indecator is
the new indecators are written about by jeremy duplessis in the book "breakthroughs in technical analysis."you can preveiw the chapter on google books.however,only updata has the indecators
 

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enclosed is a better chart.the book states that the indecators should only be used on log scale charts.so the macd is confirming the double-bottom breakout on the chart.1283 is the downside count.could be the non farm payrolls that start the action
 

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Quote from dentist007:

there is a sell signal on the s&p500,5point hilo.3 box reversal chart..eod data.the macd is 12,26/9.the ma is based on column lengths.
so i will watch the outcome and see how good this new indecator is
the new indecators are written about by jeremy duplessis in the book "breakthroughs in technical analysis."you can preveiw the chapter on google books.however,only updata has the indecators
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doc, 1400 -1440 gap area is lightly traded on this chart, its possible we have one more fill in there in next 2 weeks before going down,odds are in favor of that because sentiment is overwhelmimg that we go down from here,we get a dip in the early part of week and them climb
 
MPEL according to stockcharts had a P&F breakout signal to the upside when I bought 200 shares plus good news about increased revenue and profit.

Now it has fallen a couple points, and stockcharts based on P&F is stating that it is a sell, and they give a price target.

However, I have decided to ignore this due to some fundalmental facts.

1) Stock is near long term chart support.

2) They are openning a new casino next year.

3) Licenses have been locked so no more new operators can enter the market for now.

I have decided to buy another 200 shares. If the stock does fall down from $ 11/sh to $ 8/sh, I will double up again and buy another 400 shares. I bet one day in the future the stock does get another p and f breakout to the upside.
 
Quote from oraclewizard77:

MPEL according to stockcharts had a P&F breakout signal to the upside when I bought 200 shares plus good news about increased revenue and profit.

Now it has fallen a couple points, and stockcharts based on P&F is stating that it is a sell, and they give a price target.

However, I have decided to ignore this due to some fundalmental facts.

1) Stock is near long term chart support.

2) They are openning a new casino next year.

3) Licenses have been locked so no more new operators can enter the market for now.

I have decided to buy another 200 shares. If the stock does fall down from $ 11/sh to $ 8/sh, I will double up again and buy another 400 shares. I bet one day in the future the stock does get another p and f breakout to the upside.
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Please don't take offense to this, but if you are going to use pnf charting then take heed of the warning flags that pnf has to offer.. This stock broke it's bullish support line on 5-15 and has been dropping ever since. It still may go up, but when you ignore the major factors in pnf charting you are basically not using pnf.

This chart looks bad on the .25, .5, and 1.0 chart.
 
MPEL should be viewed on a .5 chart due to it's current price. Many times it is good to look at the next increment higher to get an idea what the chart is trying to tell us.

Looking at a .75 chart you will see that this stock has been in a steady two year downtrend.

Now I am not saying you can't make money on this stock. All I am saying is the trend is DOWN and you are trading counter trend and against pnf philosophy.
 

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this stock is up today.good.i think u need to build a base above 11-25.this acting as a main support.enclosed is a chart with the new updata macd.ie macd based on the column lengths.you can see that the stock is not oversold as yet
 

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March through May, the stock was in an uptrend when I bought it, I understand now I am posting, it is in a downtrend.

I guess from what you are saying, is if the signal changes, I should either reverse direction or take a stop loss.

I think you also mentioned you give a stock about 4 - 5 weeks to make a move, once you get a single, or if I am wrong, please correct me.

Quote from HolyGrail:

MPEL should be viewed on a .5 chart due to it's current price. Many times it is good to look at the next increment higher to get an idea what the chart is trying to tell us.

Looking at a .75 chart you will see that this stock has been in a steady two year downtrend.

Now I am not saying you can't make money on this stock. All I am saying is the trend is DOWN and you are trading counter trend and against pnf philosophy.
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