Learning to read Price Action with P&F Charting
- Thread starter HolyGrail
- Start date
Well today I traded my pnf targets to see how they would work. I was undisciplined. I took too many early profits. Next time I will be more disciplined. I made 11 trades. I made two trades AGAINST THE TREND and lost on both. I did not lose on any with the trend. This should have been a much better day.
The key is to not use a new target price until the old one has reached its target.
The key is to not use a new target price until the old one has reached its target.
How many contracts were you trading per trade?
It sounds like for some of your trades, you will trail the stop. However, I think you mentioned something about counting the number of x's on a column to determine the 1st target. Also, I would assume that targets for futures that are not hit by end of day, you manually close out to prevent overnight margin calls.
Can you please go over again how you set profit targets. Also, I would assume best trades are those with the trend. Finally, although I don't use RSI for my own trading, it does sound like you use it. Do you use it with all pandf trades that you take, and I would assume you are looking for example for RSI to either be coming down from the top for a short trade or coming up from the bottom for a long trade.
Can you please go over again how you set profit targets. Also, I would assume best trades are those with the trend. Finally, although I don't use RSI for my own trading, it does sound like you use it. Do you use it with all pandf trades that you take, and I would assume you are looking for example for RSI to either be coming down from the top for a short trade or coming up from the bottom for a long trade.
Yeah, I saw your post earlier.
I didn't think it was going to happen (last friday was one-way drop as well), but you totally nailed it ... lesson learned AND money made.
I think you're gonna move up to the big leagues soon.
This is definitely a work-in-progess. It is very difficult for me to shoot for 6 points and higher daytrading when I have been shooting for 1.5-3 points for over a year. The psychological barriers watching a 3 point gain turn to breakeven is difficult for me. Even trading multiple contracts scaling in and out, or having trailing stops does not help my success or psychology. I think I am just going to set my target and stop in buttontrader and just continue with my work at the office. If I hear a "boing" I will know I lost, and if I hear that cash register I know I have a gain.
As far as the big leagues are concerned, I will probably never trade many contracts no matter how proficient I may become as a trader. I'm in good shape financially at this point in my life so preservation of capital is absolutely essential. As I stated on the open of this thread this is going to be more for keeping my mind sharp and occupied when I retire. If I ever had to make a living from trading I would probably not enjoy it. Trading is fun for me. I hope to keep it that way.
Since I am working with different targets now I will only explain the targets I am now using.
There are two types of targets in Pnf. Vertical and Horizontal. I personally never have had success with vertical targets. A vertical target is computed after the column of a new pnf signal has completed. You take the number of boxes in the column and multiply it times 3. You take that number and multiply it times the box size, and then add it to the starting price of the column. Sometimes a vertical target is all we have because after a long column the horizontal target will actually be LESS than the stock is already trading. If a vertical target is all I have I will not take the trade based on the vertical target. I will just at the various resistance points and where the price is likely to have trouble penetrating. I will normally set my target one or two boxes away from that resistance point.
You also mentioned RSI. I don't use RSI. I use RS. RSI is a stocks performance relative to itself, while RS is a stocks relative performance versus an index.
Ok, thanks that makes alot more sense.