I attended two all day courses in London in 1992 on P&F and advanced P&F and have been using it ever since. In the format you are using (1point box X 3 reversal) it gives a good over-view of the e mini S&P.
I see that you use MarketDelta. What data do you feed it with?. The reason I ask is that at the point of the break out and retrace I have a different display at 1060. I use CQG and in the 1 point X 3 it will only create a zero on a full point and not until a full point has been printed. The market went to 1060, bounced to 1065 and then back to 1060. That gave me an unambiguous double zero print at 1060 with a print in between of X's reaching 1065. I have verified that the sequence was accurate on candles and ticks.
The e-mini does that type of pattern when it has been stuck in a range and gets an excuse for a break-out. I think that the cause was the rumour that the EU was preparing a relief package for Greece and the subsequent decline was when the rumour was denied by a German official.
What is important to an analyst is not the reason but what intent was displayed. The market achieved an upward break-out but with no follow through. The subsequent decline did not challenge or take out a major low to the left of the action. With three major congestion area lows untouched to the left, the way was clear to launch an upward push to the upside and 50+ points has been the progress so far.
P&F is an excellent way of filtering data to show what needs to be seen and if correctly configured can keep a trader on the right side of trends. One factor IMO reigns supreme in all forms of TA and that is that anything must be with reference to what it has done with reference to support and resistance to the left of the action. That 1060 is an example as it was a fall from a break-out but failed to challenge three lower lows.
