Learning to read Price Action with P&F Charting

[flyinglead]

Quote from HolyGrail:

I have no clue what one can reasonably expect. It depends on your timeframe, your signals, your targets, and your patience. This is a trend following system. When the market is trending you will make good money, when it's not you won't. It isn't different than any other type of trend following system.

I mentioned previously that this is a work-in-progress for me. What the system has done for me is kept my on the right side of the market at all times. Knowing when to be long or short is half the battle. Knowing what stocks to stay away from is another important step.

I'm sure there are some people who have already tried this and have not been able to make money from this system yet. I'm sure there are others that have done well. The more charts you see, and study every day the better you will get at reading price action. What one pattern does in a downtrend may not yield the same results in an uptrend. Only screen time will give you the answers you are looking for.

Words to remember.
(I didn't until now)

 

[yayt]

http://stockcharts.com/def/servlet/SC.pnf?chart=mt,PLTADANCBO


Possible long candidate (MT, steel)

 

[yayt]

an interesting (depressive for investors) chart:

http://stockcharts.com/def/servlet/SC.pnf?chart=anr,PLTADANCBO

104 seems to have been a very obvious top ... 3rd time around I imagine some of us would've gotten short?


I think a good screen for the future may be stocks that have hit a certain top or bottom 2 or 3 times, but spread out over time. May give some advantageous sell/buy points at the resistance/support.

 

[yayt]

http://stockcharts.com/def/servlet/SC.pnf?chart=ADS,PLTADANCBO[PA][D][F1!3!!!2!20]&pref=G

Keep a lookout for a triangle breakout

 

[yayt]

http://stockcharts.com/def/servlet/SC.pnf?chart=npk,PLTADANCBO[PA][D][F1!3!!!2!20]&pref=G

Short opportunity for NPK?

 

[flyinglead]

Quote from yayt:

http://stockcharts.com/def/servlet/SC.pnf?chart=ADS,PLTADANCBO[PA][D][F1!3!!!2!20]&pref=G

Keep a lookout for a triangle breakout

even more interesting when you put in the Support line.
Should be good if it goes a couple boxes below the extended blue line then gives a breakout down. Not sure I'd bite on the first bullish breakout in this market. ( Now that I'm on record, it will probably skyrocket up)

Been working on a short indicator from a long blue line that seems to have about an 80% success rate in all I've found, but I've only looked on the high/low charts, so it might not be as consistent on the close only charts.
traded 5 of them last week and they did pretty good, but took profit too early.

 

[flyinglead]

Quote from yayt:

http://stockcharts.com/def/servlet/SC.pnf?chart=mt,PLTADANCBO


Possible long candidate (MT, steel)

Not in a bear market
http://stockcharts.com/def/servlet/SC.pnf?chart=mt,PLTADANCBO

all but one of the longs I took since I opened my account have kicked me in the arse.

Now I'm only going short until the recession/depression is over.

one of my better trades:
http://stockcharts.com/def/servlet/SC.pnf?c=NXY,PLTADANRBO[PA][D][F1!3!!!2!20][J152351412,Y]&listNum=31

 

[flyinglead]

Quote from yayt:

http://stockcharts.com/def/servlet/SC.pnf?chart=npk,PLTADANCBO[PA][D][F1!3!!!2!20]&pref=G

Short opportunity for NPK?

good call, but did you wait for the breakout and it already went to the bottom before you could short??

 

[yayt]

Well, it wasn't really a good call, the market as a whole went down, if that went down, say, 20%, then I'd take credit

Regardless, you're right, this is not a time to go long unless everything is lining up (or want to DCA some investments which I'm looking into doing)

 

[flyinglead]

Quote from yayt:

Well, it wasn't really a good call, the market as a whole went down, if that went down, say, 20%, then I'd take credit

Ha, You're right, but I'm still working on just being right consistently. Once I get better at that, hopefully picking the better movers will fall in place.