point and figure charting

[rajatheroyal]

HI friends and senior membersi am new to traderji and i have certain doubts i request the senior members to calrify my doubts.
i want to know why point and figure charting is not popular in india.as i like swing trading i bought many foreign books on swing trading . To my surprise all books strongly recommend point and figure charting for swing trading. They(the foreign technical experts) even say that if you know point and figure charting you need not know any other technical method and that the point and figure method is the best of all methods. if it is really true then why many people do not use point and charting in india?. i am asking this question because i haven't seen any indian thechnical analyst recommending p and f.Further in traderji also there is no significant explanation about the poing and figure charting.so i request the senior members to reply to my thread. thank you.

 

[praveen98]

hi rajeth,
point and figure is a good charting system but not popular...i think you read weber and zeig book..i am a pnf chartists..are you using and familiar with pnf charts..? i can clarify if you have any as far as my knowledge permits..it will be very intresting to interact people like you.
All the best

 

[dhanabh]

Hi,
I am publishing Technical Analysis of selected stocks using point and figure method at http://pointandfigure.co.cc. Your suggestions and comments are welcome.

 

[ssvalvi]

Hi,
I am publishing Technical Analysis of selected stocks using point and figure method at http://pointandfigure.co.cc. Your suggestions and comments are welcome.

Hello dhanabh,

Thanks for sharing on P&F,Do you trade with P&F,for which market,Indian or Forex,which software you use.please share i use renko charts for trading

 

[dhanabh]

Hi,
I use Sumshare PNF for trading NSE scrips. Due to special arrangement with my sponsors I can only share the P&F charts and analysis for selected scrips and Indexes. I am sorry because of this arrangement I won't be able to share the software. Where can I find more details about renko charts?

thanks and regards,
Dhanabh

 

[manish01]

you can get Point and Figure Charts for NSE, BSE at Chartink.com

hope this helps

 

[feltra]

hi rajeth,
point and figure is a good charting system but not popular...i think you read weber and zeig book..i am a pnf chartists..are you using and familiar with pnf charts..? i can clarify if you have any as far as my knowledge permits..it will be very intresting to interact people like you.
All the best

Hi,

I hope you can clarify this question about PnF charting. [I have browsed the web (and traderji) but have not come up with answers to this so far.]

In trying to understand the charting (before writing code for the charting), I started an Excel sheet, putting actual data values in the columns. For example, I started with a value of 50 (for first price point), then moved "up" with a 1% diff from previous price point. I.e. Row 60 (say) starts with value 50. Then (for col of Xs), row 59 has value of (101% of row 60). And so on up the rows. For the next column, I used a similar downward %ge calculation.

After entering a few columns like this, I find that the values in the same row are different!!. For example, these are the values in the starting row (row 60) after about 9 cols of up/down data:

60	Start	500.00	499.30	499.00	498.50	498.05	497.11	497.06	495.72	494.68

If I increase the box size to 3%, it gets worse.... Obviously, this cannot be the way to calculate the values (for up/down movements), because the same row (across columns) MUST have the same values whether its %ge size or plain increment.

What am I doing wrong in this? Or rather the question is, how to calculate the Xs and Os if I want a %ge for the boxsize?

Advance thanks for any / all help,

Best Regards,
-feltra
PS: I have attached the XLS file for reference....

 

[manish01]

Hi,

I hope you can clarify this question about PnF charting. [I have browsed the web (and traderji) but have not come up with answers to this so far.]

In trying to understand the charting (before writing code for the charting), I started an Excel sheet, putting actual data values in the columns. For example, I started with a value of 50 (for first price point), then moved "up" with a 1% diff from previous price point. I.e. Row 60 (say) starts with value 50. Then (for col of Xs), row 59 has value of (101% of row 60). And so on up the rows. For the next column, I used a similar downward %ge calculation.

After entering a few columns like this, I find that the values in the same row are different!!. For example, these are the values in the starting row (row 60) after about 9 cols of up/down data:

60	Start	500.00	499.30	499.00	498.50	498.05	497.11	497.06	495.72	494.68

If I increase the box size to 3%, it gets worse.... Obviously, this cannot be the way to calculate the values (for up/down movements), because the same row (across columns) MUST have the same values whether its %ge size or plain increment.

What am I doing wrong in this? Or rather the question is, how to calculate the Xs and Os if I want a %ge for the boxsize?

Advance thanks for any / all help,

Best Regards,
-feltra
PS: I have attached the XLS file for reference....

Hello, the first column that you use should actually contain only the 1% from your starting value

Eg: if you keep a standard box size of 5, then you first column should start like:

525
520
515
510
505
500

now coming to the plotting of the X's and O's (using high/low), we start with a postive value (X) at 500 since the stock closed at 502


525
520
515
510
505
500 X

The next day the stock manages to make a new high of 520, so the plotting will now look like:


525
520 X
515 X
510 X
505 X
500 X

Coming to the day after, if the reversal is set to 3 and the stock manages to make a low of 500 then the column will change and how the chat will look like:


525
520 X
515 X O
510 X O
505 X O
500 X O

The vale in the first colume are the ranges and always remain the same

Hope this helps

 

[dhanabh]

Hello, the first column that you use should actually contain only the 1% from your starting value

Eg: if you keep a standard box size of 5, then you first column should start like:

525
520
515
510
505
500

now coming to the plotting of the X's and O's (using high/low), we start with a postive value (X) at 500 since the stock closed at 502


525
520
515
510
505
500 X

The next day the stock manages to make a new high of 520, so the plotting will now look like:


525
520 X
515 X
510 X
505 X
500 X

Coming to the day after, if the reversal is set to 3 and the stock manages to make a low of 500 then the column will change and how the chat will look like:


525
520 X
515 X O
510 X O
505 X O
500 X O

The vale in the first colume are the ranges and always remain the same

Hope this helps

Hi,
Though the boxsize remains constant in linear scale boxsize goes on varying in the logarithmic scale. For percentage based calculations always use log scale.
regards,
dhanabh

 

[AW10]

Hi,

I hope you can clarify this question about PnF charting. [I have browsed the web (and traderji) but have not come up with answers to this so far.]

In trying to understand the charting (before writing code for the charting), I started an Excel sheet, putting actual data values in the columns. For example, I started with a value of 50 (for first price point), then moved "up" with a 1% diff from previous price point. I.e. Row 60 (say) starts with value 50. Then (for col of Xs), row 59 has value of (101% of row 60). And so on up the rows. For the next column, I used a similar downward %ge calculation.

After entering a few columns like this, I find that the values in the same row are different!!. For example, these are the values in the starting row (row 60) after about 9 cols of up/down data:

60	Start	500.00	499.30	499.00	498.50	498.05	497.11	497.06	495.72	494.68

If I increase the box size to 3%, it gets worse.... Obviously, this cannot be the way to calculate the values (for up/down movements), because the same row (across columns) MUST have the same values whether its %ge size or plain increment.

What am I doing wrong in this? Or rather the question is, how to calculate the Xs and Os if I want a %ge for the boxsize?

Advance thanks for any / all help,

Best Regards,
-feltra
PS: I have attached the XLS file for reference....

Feltra. Try using the absolute number to decide on box size. This number can be approx 1% of the price.. but one can also experiement with different size.
Smaller the size, shorter the timeframe movement is reflected, larger the size, longer timeframe is shown by the chart.

I generally use ATR value to decide on the box size.

Manish01 has clearly given the approach to draw the columns. In P&F charting, we always think in terms of columns. First question to ask is - can we increase the size of recent column (or decrease for col of O) to next box based on today's price. If that is not the case than next question is can we move to next column based on n box reversal logic (n could be 1 or 3 or any other number).. If yes than goto new column, if no than no new drawing.

Fixed box size will ensure that you are counting the same size of movement. In practice, you can decide to step up the box size as underlying price reaches next level. i.e if price < 50, box size = 3. if price between 50 to 100, box size = 4, if between 100 to 500 box size = 5 etc..

hope this helps.
happy trading