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I'm reading more about P&F, but it seems that you are doing it differently.. not even talking about Big Road :lol:
X = a new high made
O = a new low made (if we have no new highs)
You are using a 2-box reversal in a form of a 1-box reversal (after n X we draw one O when we have two O)
Am I following right?
"For most chartists, an 'x' is a single price but for me it is the area that is between two prices;"
What do you mean MO?
Thank you much!
I marked that chart using only closing prices.
It can be done one of two ways:
a) mark an x when price closes above a line (each 'x' is one price)
b) mark an x when price closes between two lines (each 'x' is two prices)
I prefer the area method.
If you use the area method with HI/LO then price must fall back 2 lines because each x is two prices and
falling to the lower of the two prices doesn't get you out of the area.