Pros and Cons of Point & Figure Trading

Hello,

I was just wondering if there were any veterans that have mastered the way of Point and Figure trading. This method appeals to me on many levels and as I am just starting to research it I would really appreciate some input of the Pros and Cons of this way of looking at charts.

Also interested. Seen a couple of commercial indicators for MT4 for PNF, anyone seen any here on FF - Indicators or EA's?

if you look hard enough you will find at least 2. one is mine one is anothers.

you need nothing more than that information to find them within 20 minutes max.

Thanks, nubcake. Found 3, none yours, but I'll keep looking.

hah, i wonder what the 3rd one i missed is... might be not-mine one i referred to as i've seen it posted more than once.

Just curious why you would send someone searching for your indicator instead of just posting it. Seems weird.

Anyway, Point and Figure seems to be much like Renko or Range Bars. Nothing really new.

I am interested in PNF. So is your indicator for sale. please direct me to the website. thanks

yes it is for sale at the low low price of free. click on my name, then attachments, then have a look through the list and you will find it. there are also other threads on p and f charting. use the search field at the top of the page and you will find other peoples indicators in there somewhere too.

Good point. This is the point and figure indicator of nubcake that I found but haven't tried: Hopefully after this post it will index in the search for the next searchers to find.

http://www.forexfactory.com/showthre...58#post3794658

As to your point, Point and Figure has a property that I particularly don't like in that the reversal amount has to complete before the new bar can draw. So the reversal kind of sneaks up on you without any warning. And I don't see any benefit to filtering out the wicks. That combined with the fact that from my testing Renko and Equal Range bars generally tend to perform better (as do Kagi vs P&F). Presumably this is due to the more predictable size of Renko & Equal Range bars and the fact that any calculations derived from them tend to be more uniform/gradual in nature and less jumpy.

As an aside, I still claim to have invented (though others have clearly invented it as well) what is commonly known as Range bars. (my phrase is Equal Range bars) Due to the fact that before any commercially available charting packages contained this charting type, I independently included it in my own personal charting package. This along with several other unique bar types that to my knowledge haven't yet made it into the public awareness (and hopefully never will)

Thanks

People continually seem to post about trading PnF as if there is only one method with PnF. Point and Figure is a charting method that takes time out of the equation. What it helps the trader to see is areas of congestion and support/resistance levels. It also is pretty good at determining the trend.

Its not a matter of trading every double-top breakout of catapult you see as this will guarantee frustration. It will take a lot of noise out of price action. A method of trading that utilizes PnF can be developed but just like anything in trading - its about developing your own trading style. Asking what box size or reversal amount to use is akin to asking what time frame is "best" to trade.