Learning to read Price Action with P&F Charting

nas 100 has broken resistance.will the res hold as support?

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Anyone

Is it generally ok to change the box size to a smaller box size, in order to get a more fine tuned idea of entry, exit points? Or is it not worth it due to normal market noise or variation, so that the smaller box sizes may not be as accurate?
 
I think you can't go wrong by using a large box size to ascertain the trend and areas of s/r, and using a small box size to look for a good entry point and logical stop. go for it
 
All

After looking at the pnf chart for MZZ, this morning I put in a limit order to buy MZZ at 44.99 and also at 44.49. If it gets filled I will put in a stop at 43.99.

Assuming I only get filled at 44.99, then get stopped out, this would be a loss of 2.2%. If both orders get filled, my avg price will be 44.74, so if I get stopped out my loss would be 1.7%.

It looks to me like the potential target would likely be in the 48-49 box, so if you assume target = 48, this would be a gain of 6.6% (if filled at 44.99) or 7.3% (if filled at avg price of 44.74). So it looks like the reward:risk would be roughly 3:1.

ANy thoughts on this trade? I used a pnf with box size of 1.
 
Quote from yayt:

the trend is clearly down and there is no support in this area, why are you trying to go long?
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yayt - looks like MZZ has been trading in a bit of a range recently and I am expecting a general mkt pullback in next couple days. MZZ is a 2x inverse etf of mid cap index.
 
Quote from mdszj:

yayt - looks like MZZ has been trading in a bit of a range recently and I am expecting a general mkt pullback in next couple days. MZZ is a 2x inverse etf of mid cap index.
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If I were going to play the range I would've gone short at 50, I'm not sure trying to go long at the bottom of the 5-day range is a great idea (I wouldn't do it) but, I wouldn't discount a market pullback next week either. Good luck, I hope the trade works out

EDIT: I meant the range from the past month. Short at 50 after the breakdown with a 1 dollar stop loss (at 51) with a target of 45.50 - 46 area, or about a 4:1 reward to risk, going with the trend.
 
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