Mira wrote:
I think i need to read something about P&F before I start learning the Big Road Oscillator
I don't get this (I'm sorry, this could be a language problem):
"For the chart above I used HI/LO ..."
Are you referring to the datas you're picking to draw your chart?
Thank you MO
HI/LO is a method used to select a single price, the high or the low, to plot a P&F chart; if you were plotting 'x' then you continue to use the high price if you can do so & if you can't plot a new 'x' then you check the low to see if any 'o' can be marked.
For most chartists, an 'x' is a single price but for me it is the area that is between two prices; what I get when I do this is a 2-box reversal chart in the form of a 1-box reversal chart.
A '2-box reversal' simply means that there must be two 'o' before we can begin to mark a new column; xxxxx + o, the 'o' is ignored, xxxxx + oo, a new column is made for 'o' and both 'o' are marked. 'In the form of a 1-box reversal' means that xxxxx + oo results in a new column in which a single 'o' is marked (you can only do this if each mark represents and area).
A little complicated, I know, so let's start with the basics: 'closing areas':
I have marked the 'classic' way of using closing prices, in yellow; each mark is a specific price and marks are made when there is a close over, according to the reversal rules.
The way that I do it is just as easy, I make marks based on the area in which price closes: