PA, S/R, ZL, EXTREMES & MOMO

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EDM
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Postby EDM » Tue Aug 23, 2011 5:52 pm

MightyOne wrote: I see that I hove a lot of work to do in Sept. ;)

Candles are ALWAYS grouped in periods of THREE!

A box that contains 3 periods has 3 shifts & a box that contains
6 periods has 6 shifts. Once you go beyond 3 shifts you are not gaining
any additional information as you get a greater number of combinations
saying the same thing.

When you are NOT using shifts but a single CC, you are simply attempting
to select the shift that filters out the Rats. Body in the direction of profit, a wick doll, MM, & you are golden.

When you ARE using the shifts you are NOT trading a 3 period but timing the single period.
As before, body in the direction of profit / wick doll / mm, only this time you are not filtering but comparing the actions of each shift.


Not sure if you are talking about timing momentum (the start of the strongest shift compared to other shifts) or timing the entry based on the reaction of each shift to my IF/THEN line ... maybe some more charts will clear the idea :)

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PebbleTrader
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Postby PebbleTrader » Wed Aug 24, 2011 12:17 am

MO,

Are you kind of testing the water with P & F or is that something you have used in the past before and liked?

What is your opinion on the absence of TIME?

I always considered TIME to be an important aspect in analysis.

Interesting tying CC & shifts into it...
Life is just a journey

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MightyOne
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Postby MightyOne » Wed Aug 24, 2011 6:31 am

P&F really shines as method of trading tick data.

There is nothing more powerful than the 3xCC in determining S&R/S&D, Position, and taking down the big money.

Everything I do, everything I believe about the markets is based on time and price.

Price may be at the same level in every tf, but price is not the same in every timeframe when S&R is defined by time.

With P&F I do not really know where I am going, I am just going w/ the flow.

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PebbleTrader
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Postby PebbleTrader » Wed Aug 24, 2011 9:12 am

"but price is not the same in every timeframe when S&R is defined by time."

So if we can remove time, then we can better zero in on S&R levels.

It was because of the elimination of time that I had never pursued P & F before.

I can see how time might distort the perception of S & R levels.
Life is just a journey

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MightyOne
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Postby MightyOne » Wed Aug 24, 2011 4:07 pm

I am not talking about the removal of time but measuring it in new ways; because all things take time, all things contain time.

I think that I can find a happy balance between time & price in MO modified P&F =)

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Postby MightyOne » Wed Aug 24, 2011 6:55 pm

Arrows show that the entry signal was based on a close.

The other entries are standard P&F breakouts.

http://tinypic.com/view.php?pic=2cmujjb&s=7

The first step is mastering space & position!

MM & Psychology is vastly more important than everything else.

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MightyOne
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Postby MightyOne » Wed Aug 24, 2011 7:08 pm

Ok, I am going to stop spamming after this...

http://tinypic.com/view.php?pic=316rccg&s=7

Do you see why I am interested in P&F?

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Postby PebbleTrader » Wed Aug 24, 2011 11:24 pm

"The key to P&F charts is the establishment of the unit of price, which is the unit measurement of a price movement that is plotted on the graph. On P&F charts, there is no time axis, only a price axis. Rising stock prices are shown with X's and falling prices are shown with O's. These points appear on the chart only if the price moved at least one unit of price in either direction.

So say the closing prices of a stock moved up one price unit three times. This would appear as a column of three X's. If the price movement reverses direction, the chart shows a new column of O's, wherein an O is plotted for each unit of price movement. X's and O's never appear in the same column. The chartist, however, must establish how many price units make up a box, which is how much the price must move in the opposite direction for the chart to begin a new column.

Let's say, for an example, the stock you were tracking was trading at $25, and you were using a $1 unit measurement and a reversal box is three units. Now, if the stock had been trading upward to $25, the stock would have to close at $22 before the chart would reverse to a column of O's. Because each unit of price movement must be plotted, each unit of price movement down from the $25 level must, in this new column of O's, be represented by one O. The next reversal would have the stock trading up at least $3, or three points, before a new column of X's came back into view on our P&F chart. Assume then that the issue continues to fall to $20 before reversing itself; the X's would reappear once the price hits $23. Remember, you choose the unit size. It could be $0.50, $1 or even $2 if the stock price is high enough. Graphically, the first two columns of our example would look like this:

$25.00 X
$24.00 XO
$23.00 XO
$22.00 XO
$21.00 X
"

^------------- Simple example I found

So MO modified P & F, your X axis is actually TIME? Like a 1 hour or 3 hour unit of time?

So a box that is colored but contains no "X" or "O" is a wick?

Why do some boxes have no color?

"Do you see why I am interested in P&F?"

I SEE better S & R with less noise in between. :)

AND

Places to possibly consider an entry. :)

Thank you for the previous examples.
Life is just a journey

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MightyOne
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Postby MightyOne » Thu Aug 25, 2011 2:56 am

X's & O's can appear in the same column on one box reversal charts; this is called a one step back.

While we cannot say exactly how much time has passed when the X/O jumps columns we can size the squares to ignore smaller levels of congestion to increase the TF.

Because price is in congestion 80% of the time, the congestion acts as the time factor in P&F...in theory =)

The columns with no color are actually colored white.

In 3xCC, one shift is a body and the others are wicks.

I recommend that you read "The definitive guide to P&F"

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Postby pp2 » Thu Aug 25, 2011 3:05 am



I really love the way you drew your P&F chart by hand MO.

Regardless if it's P&F, I've been thinking about this lost art for a while. I think by manually drawing, the analysis is much more clearer in your head, it should have more merits than bringing up a MT4 chart.

Any hints on how to get started would be great (... yes pencil and paper at hand already ;)).

Sorry, a little off topic

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