1. What reversal value we should keep for P&F? I changed from 3 to 5 charts looks completely different. So it depend on for which market we are using it for?
2. How to interpret sequence & alphabets as mentioned in below chart?
3. How to interpret lines drawn ?
http://img545.imageshack.us/img545/2206/72674875.jpg
Hi Trade4joisar
First of all: I am not a very in dept P&F specialist. Have had some education on it. The purpose of that education was to be able to use P&F for very practical usages and not in dept as a technical analyst.
1. There is no just one possibility as different markets and different time frames have there own box size and reversal amounts. What I do when using P&F: I play around with it and the picture which makes most sense to me, is the one I use. For small time frames quit useful to see the S&R levels. Bigger time frames show the S&R quit nicely even with bars when changing the periodicity to three days, five days and bigger time frames. By the way: I use Metastock Pro as charting software and they offer a lot in this software.
Traditional P&F settings: http://i45.tinypic.com/357qelh.png
Reversal explained: http://i50.tinypic.com/2ptse4i.png
2. No idea what's behind it. Doe's the page you got this pic from not explain what they want to explain with that?
3. Maybe trend lines. But also here: No explanation on the page given? What I can see: Those lines always cross a rectangle exactly through the middle.
Good trading
DanPickUp
2. How to interpret sequence & alphabets as mentioned in below chart?
3. How to interpret lines drawn ?
http://img545.imageshack.us/img545/2206/72674875.jpg
Hi Trade4joisar
First of all: I am not a very in dept P&F specialist. Have had some education on it. The purpose of that education was to be able to use P&F for very practical usages and not in dept as a technical analyst.
1. There is no just one possibility as different markets and different time frames have there own box size and reversal amounts. What I do when using P&F: I play around with it and the picture which makes most sense to me, is the one I use. For small time frames quit useful to see the S&R levels. Bigger time frames show the S&R quit nicely even with bars when changing the periodicity to three days, five days and bigger time frames. By the way: I use Metastock Pro as charting software and they offer a lot in this software.
Traditional P&F settings: http://i45.tinypic.com/357qelh.png
Reversal explained: http://i50.tinypic.com/2ptse4i.png
2. No idea what's behind it. Doe's the page you got this pic from not explain what they want to explain with that?
3. Maybe trend lines. But also here: No explanation on the page given? What I can see: Those lines always cross a rectangle exactly through the middle.
Good trading
DanPickUp
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