Learning to read Price Action with P&F Charting

spy...daily data plot
last apttern upwards is a catapult.the green area is where this pattern fails

whelgy.png
 
update on failing catapult.getting very close to being bearish.if it retraces and then breaks down from this level.the target/downwards from the vertical count is 16% away

juy4ud.png
 
Quote from mdszj:

All

I have been looking for daily numerical totals of buy and sell pnf signals with not too much success. Looks like stockcharts does not have them, or at least I cant find them. Does anybody here know where I might be able to get pnf buy signals totals? I want to try comparing daily trends and compare it to mkt performance.

thx
More...


This was originally posted some time ago...


Not sure you got your answer yet - you'll find some info at the bottom of this page:


http://stockcharts.com/def/servlet/SC.scan


You may also want to use net changes in the BPI's for various universes. Bear in mind the BPI's have no correlation to price, however (of either stocks or indexes).
 
Quote from HolyGrail:

In any event, I haven't been on the board in a very long time. I was just catching up on my reading when I saw your ill-informed posts. I'm gone again. Good trading to all. I just realized this is exactly why it is no longer worth my time to be on trading boards. Everyone is an expert at least in their own minds.
More...



Let me thank you for beginning this thread. You should stay aboard. It's a bit serendipitous that I happened upon it. I got through the first several pages and had to fast forward to the (current) end. Then I started going backward page by page. I aim to read the entire thing this weekend.

I hope you reconsider staying active - I aim to be a part of this thread. PnF is a very misunderstood craft.


Moss
 
Quote from HolyGrail:

Here is some food for thought. What if you have a stock whose projection is that it is going to zero. Would or could that indicate a bottom?

Right now AMD is projected to go to zero.
More...

(I'm up to page 70-something now...)

LOL - postscript:

It nearly did go to zero.

Px objectives in PnF have a high degree of validity, but must be taken in the proper context of the classic chart construction/scaling and the configuration of the market and BPI's.
 
Quote from oraclewizard77:


...One other thought, do you think it would be worth it to say buy a vertical put option on a stock that gives you a sell signal and/or buy a vertical call option on a stock that gives you a buy signal? Or because you will be stuck in the option till time expires, it is not worth it?
More...
Tom Dorsey and Watson Wright ran the options strategy department for Wheat, First Securities in the 80's using nothing but Point and Figure.

(They stepped out on their own in early '87; their first market call for clients was to raise cash - that August.)
 
Quote from yayt:

hey all,
Ive been looking into using pnf charting as a basis for longer term, position trading, where I'd want to capture a couple (or more) dollars as opposed to a few cents (relatively) trading intraday .
While I've only read posts regarding intraday trading , do you think this method would be conducive to longer term trading ?

Thanks again for the insights holy Grail and dentist and everyone else !


h
More...
PnF lends itself very well to swing, position and trend trading.
 
Quote from yayt:



The problem is, the signal came a couple days before its earnings came out, and while I knew this because I looked into the company and did some research before I went in, I thought it'd be helpful to warn people when holding onto longer term P&F based positions that news events...

...With regards to position trading, does it seem feasibly to take the private equity approach, and hope for lots of breakevens/slight losses and 1 or 2 homeruns?
...
More...

1) Good call - there is no reason not to know about events such as this when holding a name for any duration longer than a swing trade, and even then you can use options. (EMC, June 1998 is my nemesis, 24000 shares for clients... 62 one afternoon, 38 the next morning pre-market in Europe)

2) Very feasible provided you understand the overall trend of the market; having 5-6 tight losers, 2 market performers and 2 outliers is achievable with many strategies, and is easily accomplished with this methodology. Again, market trend first.
 
Quote from yayt:

Is there a way to get this percentage reading, similar to downloading the historical daily data from Yahoo? I'm not really sure what Bullish % is

I think the easiest one to test first would be double top/bottom breakout/breakdown, with a stop at the last column of O's?
More...

This post is from 05/2008...

Abe Cohen devised the BPI from PnF charts in the mid 50's. Investors Intelligence has it for subscribers, but it's available here (back ten years):

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=msummary&cmd=show,iday&disp=SXA

(Bottom of page)

This index was on defense beginning in June of 08, and I'm anxious to see the next several months of posts in this thread.
 
You must log in or register to reply here.
Back
Top