Learning to read Price Action with P&F Charting

[dentist007]

a longer term chart of the s&p500
20 point box size by 3 box reversal
close data
it seems that 900 and especially 1000 are the real big resistance areas.on this chart 850 and 870 areas dont even show up

 

[ammo]

notice last few rally 's resistance

 

[dentist007]

yes.
this chart picks up those at 865 area
however,if you look at the higher box size that i puut on,then this area does not show up,only the 900 and 1000 really show.so,in my mind,these are really major res areas.it all depnds if we get a close above 1276,then the res on the 12 by 3 chart is broken.this is a crazy market and can easlily happen

 

[mdszj]

All

Just started reading this thread, I have been using pnf charts for a while now and trying to get better. I found a good site that has handy S/L lines for several of the main indices, etc. Looks like we are currently between the main S/L lines of 805 and 898 on S&P 500.

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2684038&cmd=show[s129091841]&disp=P

 

[mdszj]

All

Just wondering if it may be a good time to go long SDS (2x inverse S&P) based on current pnf chart: http://stockcharts.com/def/servlet/SC.pnf?chart=SDS,PLUADANRBO[PA!B20!B50][D][F1!3!1!!2!20]&pref=G

The chart shows that SDS now has a O in the 68-69 box, which looks like a support box. It can go as low as 67.01 before it fills in the next lower box (67-68). Closing price as of Fri 4/10 was 67.13, so it looks like it is very close to a good support level and stop loss point.

My trade would be: go long SDS now, down to as low as 67.01. Set stop at 66.99 because if it goes lower than this, looks like the next lower support it could go to is a O in the 65-66 box. Assuming you get in at 67.13 and then get stopped out at 66.99, this is a 0.2% loss (not too bad).

If stopped out I would then watch it when it reaches the 65-66 level and jump in at this level (somewhere in the 64.01 - 65.99 range).

Does anyone have any thoughts on this trade? Any ideas welcome, thx.

 

[TMcKenna]

Good thread.

subscribed

 

[dentist007]

sds. do you have any confirmation that it is reversing that last downtrend.?
if so.post the chart

 

[dentist007]

dow..a high box size chart
200 points by 3 reversal .close data
the main res area is 9000.as shown/red line.this is 9% away for the today price
whereas in the s&p 500 it is 900.approx 5% away from today price
s500 needs to close above 876 for the previously posted 12 by 3 to be bullish.then its on to 900
in theory the s500 should get to the main res first
anybody got ideas.??

 

[S&P Sensei]

I am new to P&F charting, do any of you have educational resources other than this thread to understand it fully.

 

[dentist007]

if you go to google and put in the p/f books in youre library.you can then read most of the stuff