Point and Figure method - trading journal

Then some Rock n roll:

ROK

The last three days have been exceptional.

The formation leading to that crazy breakout is quite strange with lower lows and lower highs. That's what some people would call a flag. Chart patterns were my introduction to price action analysis and trading. From that I moved to Richard D Wyckoff's work, and later simplified my own analysis with heavier focus on Point and Figure and confirming analysis on bar charts or candle stick charts.

http://www.paf.am/?di=UY99
 
I just had to include this one also. SPRT. High risk - high reward?

I normally do not like these companies that are driven by news, but this pharmaceutical company apparently had a drug approved or something and the news made it blow through the roof. Now we are in a pullback after that news, and perhaps at a place where we might see a reversal.

http://www.paf.am/?di=E6D8

About halfway of closing the gap. Normally a Wyckoff trader would consider the half-way point from top to bottom of pullback. When we're having a gap, we must look at it another way. Gaps want to be filled. That is one of their only reason for living.... A strong stock will not fill its gap, but it still wants to be tested. If we don't fill the gap, we are dealing with a strong stock.

Now, the point & figure chart just looks like a column of X and a column of O. Interesting to not when we're talking about half-way points - the column of X is 44 boxes, and the column of O is 22 boxes - and for those of you that know basic math, that is half.

http://www.paf.am/?di=9XDO
 
First of all,

sorry the post yesterday should have been SRPT and not SPRT - two different securities.

The one in my pics is SRPT.

Ever bought or sold the wrong stock? I have. You feel like an idiot when you do. It happens
to everyone once in a while I guess.


Anyway....


We had an up move in the markets. Dare we believe that it will continue, or did we see a reversal bar yesterday?
A "peek-a-boo" in the resistance zone at 1420? Will we jump into that zone or was it the last time we saw these levels
for some time?

Looking at the Spiders SPY.

http://www.paf.am/?di=8EU3

The 5 box size says we're approaching a resistance zone above 145.
The 1 box size says we're heading down through the support at 142.

I wrote a little poem for you:

What do you do,
when you are in doubt?
When you don't have a clue?
You had better stay out!
 
Quote from 1a2b3cppp:

How does PAF perform in chop? Seems great when a stock is trendy.
More...

Point & Figure has its built in "filter" - you set the box size and reversal size and you can actually avoid the chop.

E.g. If you use a box size of 5 for a stock trading at a price around $100 it can chop around as much as it want at 90, 91, 92, 91, 92, 93, 91, 94, 91, 92, 93,94,91,95,91,93,... (you get the picture) and then 100 - and your chart will only show 90, 95, 100 - i.e. actually a trend from 90 to 100, and you are never chopped out.

In my humble opinion it is great for trends and ranges, AND it filters out much of the chop.

It is no holy grail, but it is a "simple" grail in my humble opinion. You might sometimes enter on $90 instead of $89.94 as an entry signal would come at the $90 sharp (depending on your settings of course). You don't have to use "plain vanilla" P&F, you can always use bar charts for exact entry signals after you see interesting patterns forming on the P&F charts.

Hope it explains.
 
Is it safe to say that the general market does not like the elected president?
No confidence in the president's abilities to solve the financial trouble?

Is it safe to say that the market had a terrible day?

We officially jumped into the deep water, with a big splash. Huge bar, huge volume. Force.

I expect lower prices, with a test of the new resistance zone at some point.

http://www.paf.am/?di=SDGG

We can confidently start looking at some short candidates.
 
Yes we're heading downwards. The volume has picked up significantly - what I would call heavy selling.

The point and figure chart shows two levels of support at 137, the previous resistance level and a minor
45 degree trendline - both at the same level of 137. Another 45 degree trendline below that might
be the next support somewhere close to 134, where we also have a support level on the point and figure
plottings.

http://www.paf.am/?di=IOCY

Looking at the barchart we can see that recently up-moves have had smaller and more bara, while
the down moves have been on larger and fewer bars - this shows that the line of least resistance have been down.
Likewise we can also note that the volume has been heavier on the down moves.

The last two days have had much heavier volume than any other bar lately.

http://www.paf.am/?di=8INT
 
An interesting thing to note, perhaps without much importance, is that the areas marked with the gray background are quite similar, while the first one is a little bit larger.

Counting the final down moves in these areas, in the first one we had 10 Os down, in the current one we currently have 7. If we would have symmetric down moves from the symmetric areas, we would see a down move of 8 Os to 138 level. Close to the support we identified in the previous post.

http://www.paf.am/?di=3ZLB
 
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