I read Micheal Archers's/James Bickford new book The Forex Chartist Companion:A Visual Approach to Technical Analysis- it's first big section is on Point and Figure charting. This is the most extensive book I have read on all different types of charting in forex trading plus many visual basic code for almost everything for a forex trader.
They reccomend that you buy some graph paper and actually hand draw PF charts in real-time. It is not that hard after some practice but vttrader has 1min PF charts to supplement.
After charting the New York session on Eur/Usd - these PF charts show those breakout during the volatile morning hours. They do not have time constraints to waste time between the major moves. They also show chart formations, especially triangles and box formations, support/resistance, trendlines perfectly. It takes a little time to adjust to the squareness, but after time you get used to the various breakout patterns.
I used to trade with all kinds of indicators, channels, ma's- Know I just find myself staring at a Point and Figure just daring the Euro to try and make some sort of breakout so I can trade it!
The FX market seems to go from short and fast periods of major price breakouts coupled between longer periods of consolidation. I am content with my trading to sit and stare at PF charts all morning trading breakout patterns and using 5min charts for exits.
One major question I have is about Brokers or dealers- this type of trading would be ideal for commission only charges or something similar. These breakouts are anywhers from 5 pips to 30 pips, most are around 10 pips. So making several trades with 3-5 spreads is almost half of your profit.
Does anybody have any reccomendations on brokers that charge commissions only??? I have not ever used anything but CMS and Oanda.
I would also like to hear from anybody else who is trading with point and figure charts and what settings etc.. I have only been using PF for about 2 weeks but I already see a inprovement in my trading.
I use a 2 box 3 reversal setting. I have heard that most traders use 1 box 3 reversal setting but a 2 box is much easier to plot by hand on a graph paper. I am still unsure about what settings will be appropiate at different timeframes.
I though I would post a couple of morning breakout trades. These are only paper traded.
Thanks traders,
Rippy
They reccomend that you buy some graph paper and actually hand draw PF charts in real-time. It is not that hard after some practice but vttrader has 1min PF charts to supplement.
After charting the New York session on Eur/Usd - these PF charts show those breakout during the volatile morning hours. They do not have time constraints to waste time between the major moves. They also show chart formations, especially triangles and box formations, support/resistance, trendlines perfectly. It takes a little time to adjust to the squareness, but after time you get used to the various breakout patterns.
I used to trade with all kinds of indicators, channels, ma's- Know I just find myself staring at a Point and Figure just daring the Euro to try and make some sort of breakout so I can trade it!
The FX market seems to go from short and fast periods of major price breakouts coupled between longer periods of consolidation. I am content with my trading to sit and stare at PF charts all morning trading breakout patterns and using 5min charts for exits.
One major question I have is about Brokers or dealers- this type of trading would be ideal for commission only charges or something similar. These breakouts are anywhers from 5 pips to 30 pips, most are around 10 pips. So making several trades with 3-5 spreads is almost half of your profit.
Does anybody have any reccomendations on brokers that charge commissions only??? I have not ever used anything but CMS and Oanda.
I would also like to hear from anybody else who is trading with point and figure charts and what settings etc.. I have only been using PF for about 2 weeks but I already see a inprovement in my trading.
I use a 2 box 3 reversal setting. I have heard that most traders use 1 box 3 reversal setting but a 2 box is much easier to plot by hand on a graph paper. I am still unsure about what settings will be appropiate at different timeframes.
I though I would post a couple of morning breakout trades. These are only paper traded.
Thanks traders,
Rippy
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