Best Thread learning to read price action with p/f charts

[malaguti]

One to look at for sure, however I cant share your bullishness on the S&P..I'm looking for shorts..here's Amec, 1 box which I cant get me head around just yet, but looking like good also on the 3 box. loads like this in all honesty

 

[Dentalfloss]

ok...so we saw 1370 area be a pretty good supp area,except on monday when it overshot.but market flattened and rallied from that area.the friday close was 1370..bang on
monday open and next week..if Spain troubles persist,then we look to next supp area at 1353 to 1360 ..if its really bad news then this wont hold
2 hour data
box size is 11 by 1 reversal
there is res at 1385 area/downtrend line..so that needs to be watched..if it gets near

 

[Dentalfloss]

just remember that the s&p 500 at this point in time is a fake
the latest breakout on this chart has not been supported as yet
if it retraces then 1320 area is the 50% zone
daily data10 points by 3 reversal

 

[isatrader]

just remember that the s&p 500 at this point in time is a fake
the latest breakout on this chart has not been supported as yet
if it retraces then 1320 area is the 50% zone
daily data10 points by 3 reversal

I agree a pullback below 1320 would cause a high pole warning, but the 1340 level is more important imo, as it is the first major support based on price and price by volume data that you can see horizontally on the left of the below chart.

What I like to do on the P&F chart with the major indexes is to include the horizontal and vertical volume data to show what support levels are important and which breakouts are backed by big money, as I think this gives a clearer picture as to what is going on than just price alone.

Volume increased on the breakout above 1300 dramatically and has been light on the pullback so far, which is a positive sign that this could be just a pullback imo.

 

[Dentalfloss]

a big week comin up for the dollar
audusd daily data.a big res area that should get tested
rba rate decision and monetary policy this week
non farm payrolls and adp employment data
1.0500 area to watch
audusd shows a decent trend..eur and cable are messy charts.imho
should set the tone for dollar crosses

 

[Dentalfloss]

here is the right chart
other one is dollar index

 

[Dentalfloss]

keep an eye on the blue trendline
s&p 500 index
5 minute data
the uptrend started last monday 23 april
2 pts box size by 1 reversal
support for this minor trend is 1388 -1390area

 

[Dentalfloss]

hi malaguti
barc..4 hour
range is tightening..the tighter the better
not sure which way it will break

 

[malaguti]

Alas, I'm now out of that trade..barely broke even with a buy signal
welcome back though!

 

[Dentalfloss]

spx 5 minute data
we are still tracking that uptrend
update on the previous chart

 

[Dentalfloss]

same chart time input..5 mins
up a box size to 2.50 points
uptrend is still supported..just

 

[Dentalfloss]

s&p 500 index
2 hour data
flat for some time now
res is well defined
supp is also well defined
however,if we break downwards,the main trend support is underneath/cluster of trendlines

 

[malaguti]

Best p&F charts on the web...bar none

 

[Dentalfloss]

europe is not burnt out as yet
dax
daily data

 

[Dentalfloss]

well...w e saw 6400 area act as major supp on the dax this week
now lets look at the euro
eurusd 2 hour data
10 pips by 3 reversal
1.2970 is the 50% retrace on this chart...uneless we get more downward moves
anyway,,we can see that price coiled before it broke downwards

 

[Dentalfloss]

s&p 500
30 min data
this chart wants to be bullish

 

[malaguti]

OK, here's one, small compared to your risk Dentist, but I'm just starting off here.
Triple bottom, and this is a 1% box size. But this stock does not change trend too often..Have we seen the start of another new one in BT?


A question though for you Dentist..entry signals are a given. But the exit? I came out of Barclays recently on a new buy signal. However the stock is still in a down-trend and now making fresh lows. From your experience do you ride out the complete trend, or do you exit on the first signal in the opposite direction and then enter again on another sell signal? I guess you would have done some sort of backtesting in this regard. what works for you?

 

[Dentalfloss]

Hi Malaguti
BT..yes,a new downtrend.......BUT......
go up box sizes
and see where the trends are and where they break
these are potential supp levels
% box sizes....=exponentail moves by virtue of their calcualtion
better keep to arithmetic...imho
really only useful for scanning

never really ride out the trend
not necessary
most breaks,you usually get 5 boxes...then market retraces..that is a rule from holygrail on elitetrader...a good one
so in the region of 5 box i am lookin for an exit potential..i dont want to be around whilst the market decides
but then i am looking at retracement areas for early entry...see Duplessis book for that
in fact that is all i am looking for
1.breakout points
2.early entry before the break
nowt elose
so at these so

 

[malaguti]

BT..yes,a new downtrend.......BUT......
go up box sizes
and see where the trends are and where they break
these are potential supp levels

OK, so looking at a 3 box size, I can indeed see we have support underneath.
So should these be my potential exit and reentry points? on the break of these?




most breaks,you usually get 5 boxes...then market retraces..that is a rule from holygrail on elitetrader...a good one
so in the region of 5 box i am lookin for an exit potential..i dont want to be around whilst the market decides
but then i am looking at retracement areas for early entry...see Duplessis book for that

Thats very interesting, visually even looking at BT 4-5 boxes and then a retracement. So clearly you are not looking for confirmation of the breakout, as then you only have 2 boxes perhaps from which to exit, and not even setting a sell stop on the break as you are already in..too advanced for me, but I will take this on board!

 

[Dentalfloss]

not quite
i am looking for early entries
that is..
assessing where the breakout is
then getting in on the opposite side of the pattern
so..i am getting a run inside the pattern and the break,which will hopefully give 5 boxes
then possible trade the retrace...not always