Intraday Point and Figure Trading

those fields are not mandatory.

some users get weird errors when using chrome, but if the error persists just stick in some fake info.

I cannot think of any way to reduce its functionality without stopping it working completely. Its not like other P&F indis where everything has to be built into it for those extra features to work, and I could issue a stripped down version for trial purposes.

However a number of people using the indicator are posting in this thread at kreslik http://kreslik.com/forums/viewtopic.php?t=3155

G.

That indi is also in the donational section
At this time I have not updated the wiki to include the recent postings.

It is there since it is a modified SweetSpot indicator that has been adjusted so it displays properly when used on P&F charts generated by the II_Point&Figure indicator. If you look you will see that the blue band is exactly one box wide The more usual implementation is pictured below.

At this time there are 4 indicators specifically written to work with the P&F charts.

Hello.
Setup: 20x3
* That's not 45 degrees trends lines, but the channel is obvious.

Moreover, Kiwi advanced as stock gains boosted demand for risky assets and also growth linked currencies like kiwi, along with the cheerful data from the Chinese economy, where China’ industrial production continued to accelerate, adding that New Zealand products will increase this period because the Chinese market is the largest market for New Zealand goods....(By fxempire)
http://img192.imageshack.us/img192/9996/m11oct08.png
~~~>mdunleavy.byethost7.com/11Oct02.html
^^^ OR vvv
~~~>img695.imageshack.us/img695/2585/11oct08.pdf
^^^ OR vvv

For anyone who's based in or near London, this could be interesting. A 4 hour intensive workshop with Jeremy du Plessis (author of The Definitive Guide to Point and Figure...like you didn't know). At a bargain too!! This will be at the World MoneyShow in November if anyone was thinking about attending that.

Understanding and using point and figure charts

CL

Chartistlion thanks for the info!

I've read Jeremy du Plessis book about pnf, superb thing.

I am neutral on USD/JPY.
While the pair finally closed above 77 and has room for gains in the long run, it is hard to see the pair making a serious move right now. The high level of optimism probably won’t be repeated right now.[forexcrunch]

http://img42.imageshack.us/img42/7260/m11oct17.png

setup: 20x3

Forex – GBP/CHF P&F charts
http://img171.imageshack.us/img171/2457/m11oct21.png
Full size ~~~>img638.imageshack.us/img638/712/b11oct21.png
Excel charts↓

Updated review UsdJpy
See post above too.
~~~>img402.imageshack.us/img402/7995/11oct22.pdf
http://img163.imageshack.us/img163/5677/m11oct22.png

The Canadian dollar made more gains against the US dollar and crossed the line of parity. GDP and employment data are the major events this week. Here’s an outlook for the Canadian events and an updated technical analysis for USD/CAD.[forexcrunch]
http://img810.imageshack.us/img810/3396/tb11oct30.png
CLICK HERE for detail information...
A t t a c h m e n t

USD/CAD bounced this past week as traders sold off a lot of risk-related assets globally. The pair finished strongly above the parity level, and as such has us thinking long at this point. However, the 1.03 area will be resistive, and as such we are waiting for a close above it in order to buy. The selling of this pair can be done if we break the lows of this past week’s candle. Until then, we think this market goes sideways.[by fxempire]
http://img207.imageshack.us/img207/7567/tb11nov06.png

EUR/USD
setup: 10x3
chart: PNF

*FXstreet.com (California) - AUD/USD opened the Asian morning at 1.0342 and has since broken below the 1.0300 zone. From a technical standpoint, Valeria Bednarik, Chief Analyst at FXstreet.com finds that bigger time frames support a bullish outlook for this Monday, as long as above 1.0270.
*At time of writing, AUD/USD is quoted in the 1.0290 zone, around 10 pips above Friday's closing price. If the pair continues its decline in the session ahead, support levels lie at 1.0270, 1.0230 and 1.0180. To the upside, resistance levels lie at 1.0360, 1.0400 and 1.0440.
https://lh6.googleusercontent.com/-Z...00/11Nov14.png
CLICK HERE for detail information...
~~~>mdunleavy.byethost7.com/11Nov13.html
^^^ OR vvv
A t t a c h m e n t

Hi,

Point and Figure charts for EUR/USD pair for 2011-11-15

setup:
boxsize - 10
step -3
MA1(blue) period: 10
MA2(white) period: 20

X/O's view


"blocks" view

Sell EURAUD
https://docs.google.com/document/pub...9EbCyQi-F-ulzM
Learn more ↓ PDF file

By now most people should have read about, or seen a vid explanation of Point and Figure Charting.

The P&F literature out there uses P&F charting as a breakout strategy, and theres a bunch of books that describe this and the dozens of chart patterns that signal buys and sells.

These books and vids (even du Plessis' works) are painfully lacking in just how cool P&F actually is.

Lets just say now that while these ideas are interesting when I did a bunch of markups in the traditional ways that I was distinctly unimpressed with the results. Possibly cos I dont like breakout trading: I always feel Im entering late with a massive stop and are just waiting to get 'zeroed'.
But I do love the base charting method cos it just shows Supply and Demand which is the simplest (and I believe most powerful) way to trade.

So what I did was take P&F charting and apply it to Supply and Demand trading methods (and ideas) such as those presented by Sam Seiden.
The results are so much more powerful than traditional P&F since the key areas of a chart stick out immediately without the use of indicators and without any room for misinterpretation. It shows the safest places to enter a trade, which happen to coincide with the most risk-free entries (something that should be obvious to anyone with even the most basic knowledge of supply and demand), ie tightest "stop".

And finally when combined with the concept of space (which I will explain a bit more about later), trade sequencing and the Levarage/Risk ledger leads to the most stress free trading ive ever encountered....

Of course these are most likely concepts that many wont have seen before, but thats hardly surprising given the signal:noise ratio of trading forums and the general reaction to concepts that seem to run counter to conventional wisdom.

these charts are cleaned up somewhat from a training exercise, but show nicely what I am referring to.
The first chart is a EN 50x2 markup of S/R. This is simply to give an indication of which way to trade, and where I might expect price to reverse at. you can see where the lines are based from on the left of the chart.

http://i44.tinypic.com/1z6bfyh.gif

the next two charts are between the two vertical lines on the EN markup above, the first one details some of the thought process that goes into making trading decisions. Truth be told there are too many lines drawn, but you should get a feel for the decision process from them.

The first shows the decline, and omits trade entries/exits and space manipulations.

http://i44.tinypic.com/ay252w.gif

the second shows the upward movement and the entries/exits and space manipulations. I have deliberately left numbers off the chart, since they are not all that important to this exercise. In this chart the S/R lines have been (mostly) omitted, with the exception of the 50x2 lines, which I will remind people are drawn a long time before they are needed. It should be seen in this markup the primary objective of S/R trading is to trade from line to line.
Please note that there are definite "stops" in place, space is being manipulated according to guidelines and rules, and all the entries/space manipulations have the same logic behind them.

http://i41.tinypic.com/2a8qipd.gif

I am not looking for validation or criticism, but an intelligent conversation about the method of using P&F to more ably trade Supply and Demand.

G.

hello Bredin,

many thanks for sharing with us your findings. i would like to learn more on how you are using P&F in your supply demand trading.

some questions:

1) since P&F removes time, do you change the box size to look for supply/demand? In conventional supply demand using candlesticks, typically we look at a few time frames and mark out the zones b4 moving down to the smaller time frames to get better entries or to prevent entering at a supply zone in the lower time frame but it is a demand zone on the higher time frame. are the supply demand zone identify using similar fomrations like Rally-Base-Drop/Drop-Base-Rally?

2) Will the stop be very big as we are using box sizes.

3) Can you elaborate more on the use of "space" in your trading?

thank you.

Ok youve asked a bunch of questions, let me see how many of them I can answer...

"since P&F removes time, do you change the box size to look for supply/demand? In conventional supply demand using candlesticks, typically we look at a few time frames and mark out the zones b4 moving down to the smaller time frames to get better entries or to prevent entering at a supply zone in the lower time frame but it is a demand zone on the higher time frame."

To answer this you need to answer "why do we use larger tfs for analysis?" and "what price movement is typically on our larger tf charts?" Simply put we use bigger tfs to see bigger moves that filter out small shifts in price.
So looking at a 50x2 chart, for example, automatically filters out any price move of less than 100 or so pips. Which in turn means we start looking at moves of 200+ pips as the baseline of our trades.
Smaller charts such as 10x2 are used to enter at optimal points, and to show the PA that is more likely to result in trend (as much as I hate that word) changes.
P&F shows Supply and Demand: what do you think causes a price reversal large enough to start a new column?


"are the supply demand zone identify using similar fomrations like Rally-Base-Drop/Drop-Base-Rally?"

they are identical. The big difference is they often happen in successive candles (columns). After all its price movement that determines those formations, and price movement that draws P&F charts.

I'll take that a bit further: an uptrend in a P&F chart will leave areas of demand in its wake, and seen by the small retraces.... P&F shows where excess demand or supply still exists: it has to.


"Will the stop be very big as we are using box sizes."
"Can you elaborate more on the use of "space" in your trading?"

Stops, as defined by the majority of traders are not used with Space.

Space is both a method of capital protection, and of profit compounding.
It is borne of the idea of trading with maximum leverage with minimum risk.

Give me a moment to mark up a chart...

http://i44.tinypic.com/2evyc7k.gif

Whats going on here is that price crosses R, then a down column fails to close over R so R->S (resistance becomes support). at this point trade 1 (red) is opened. The Box represents Space. the line marked IF/THEN is a decision point: having seen that R->S, we can expect that price will not cross that line again, So a safe entry is made, and made safer by using a large amount of Space...
Space is defined at $$/distance to loss of $$
If I was willing to lose 2% of a 10k account then space would be 200/pips.
Can you see that if price crosses the I/T line then we only lose a portion of our risk? The remaining portion of our account is used for leverage as the trade sequence progresses.
then price retraces back to the line and rebounds off it confirming that the line really is S.
at 2 (white) we contract the space by adding lots. since risk remains unchanged the distance to max loss must get smaller.
In this example the trade just waits to hit its next target, which it does. then the gained $$ is injected into Space.
so if this trade made $100 then we could now have 300/pips in our space, meaning that if an identical trade came along our lotsize would be 50% bigger than before, but the amount of our capital at risk is only $200... compare with the 2% of accountsize where lotsize will only grow by 1% to $202, you can see that by this method, lotsize compounds very quickly on very small runs of 'winners'.
If we were wrong only a small part of our risk would be lost, even after contracting our Space. in this example the loss would be about 30% of risk (including spread). If we did lose our new space would be something like 140/pips. We only consider a trade sequence to be a loss if the lotsize falls below the level required to open a trade.
The smaller initial lotsize allows us the luxury of gaining some $$ is price just 'took off' and didnt retrace to a better price.

I am sorry but I think that is enough for now, I dont think there is much to be gained at this time be going into Leverage/Risk Ledgers, and trade sequencing.

G. (edited for spelling)

A bit exotic. :-) USD/HKD