Learning to read Price Action with P&F Charting

Possible double bottom sell signal for BA, if it reached 40.00 flat. Should be interesting.

It almost hit it but formed a double bottom on the candlestick chart and shot backup, any additional weakness though and I could see it retracing to prior resistance levels before another run up.

Looks good from a risk-reward standpoint though.

Edit: .25 box size, 3 box reversal.


http://img143.imageshack.us/my.php?image=bashortpi8.jpg

-troll
 
I've been looking at intraday PnF charts myself, on YM and ES using QuoteTracker.

One thing that jumps right out at you is the suggestion of sensible stop placement. PnF charts are really cool.

You could either set a stop at 43.25 which is the top of the double bottom pattern, or 42.00 which is just a 3 box reversal.
 
Quote from yayt:

http://stockcharts.com/def/servlet/...art=msft,pltadancbo[pa][d][f1!3!!!2!20]&pnf=y

What do you guys think of getting long if it hits 18 again? That was the low from the end of the dot com bubble
More...


http://img212.imageshack.us/my.php?image=chartofmsftsc7.gif

The above is using a .10 box, 3 box reversal. Every other chart shows Microsoft in a possible uptrend.

What I'm trying to figure out is this: I see the break out, but it didn't drop like I thought it would and at the same time it started to rise again (hence the next column of X's...it didn't pop far either, this might be due to resistance close by?). But anyway, now it's carving a base on a small time scale, if it breaks down further I feel it would head down.

Should be interesting to see what happens tomorrow with the bail out junk. I'm assuming it is going to be dead in the morning and then pick up in the afternoon.

As for buying it again around 18, if it gets down there again, I think it would be a possible good idea. If you plan on trading P&F setups/signals than you have to realize that you must wait for a signal to get in. Unless you want to pre-game the market and bet on the bottom holding up.

My opinions.

-troll
 
merry christmas to all the contributors to this thread and to all the readers
i know it will be a very profitable 2009 for all.
just reading and learning fom this thread will give you the edge
 
a very prosperous new year to all readers of this thread.may the volatility continue
i just thought i would put forward an idea mooted by marc rivalland.the highly respected point and figure chartist.his argument is that stocks are due a rally.however,the instigator will be whether investors have the apettite to go back in to more riskier stocks.so he is watching the nas 100 and its relative strength to the dow.the nas being the one to watch
i have put on a relative strength chart of the nas 100 to the dow.this is a normalised rel stregth chart where it plots the relative performance as a percentage.box size is 0.5%,3 box reversal.you can see that the nas 100 got sold off more than the dow in the big down move after the lehman bankruptcy.there was a horizontal count of 94.5.so it got oversold against the dow,which you would expect
now the last column is moving upwards and could be bullish soon.ie a double-top above 95 area.so according to rivalland,january could decide the outcome.before or after the obama inauguration


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the above post should not be confused with the possible rally we might get in the next few days.this rally,if it happens will be on thin volume.the above is looking towards a more sutainable rally
 
Hello,

Anybody can help me with some info where I can get to draw p&f charts? I have been trying xocharts and archeranalysis but it is not working for me as I have metatrader free data only,

Thank you!:)
 
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