This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
The Chairman is posting dummy trades again, and I am going to embark on a little experiment. What I would like to do is take his dummy trade of the day, and display it on a point and figure chart. I think it may prove to be useful, but only time will tell.
For now I’m using a five cent box with a reversal setting of three. I think that setting will allow traders to filter out much of the noise, and find a low risk dummy entry. The chart he posted today wasn’t a screamer. I will alternate between dummy trades, and Trader-X plays.
Edit: Vincent pointed out that my settings were not correct. This chart looks more familiar.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
May 29th, 2007 at 6:46 pm
That’s a great idea. I’m skeptical that 0.05/3 will always work well, but we’ll see!
May 29th, 2007 at 6:49 pm
yeah, that is probably true…if u can think of a setting that would work, let me know…the settings i use for the different futures contracts are extremely different
my thinking is that i wanted it to be consistent, or otherwise it could be extremely difficult to manage a stock watchlist using pnf…when asked about a stock in wallstreak, do u pull up a pnf chart? if so, do u use a standard setting? my main goal is consistency if that is possible
May 29th, 2007 at 7:00 pm
So far, I’ve been happy enough holding the reversal count to one. I do this because that way I can find entries with conservative 4-box stops. I have been meaning to play with smaller boxes + larger reversal counts, but haven’t yet.
What I do, is I have three intraday pnf charts on my screen, all linked so they always show the same symbol. The charts use box sizes 0.05, 0.10, and 0.15. So, whenever I look at a symbol, I just pick the chart that looks cleanest. I also have the daily pnf, and a 30′ chart all linked to that symbol. And, I keep PnFs of QQQQ and DIA up at all times.
So, I only look at one stock at a time, normally. I “watch” multiple charts via alerts that tell me if a stock’s worth checking out again. I do leave space on my screen for 3 more intraday charts if I do want to leave a couple stocks up, but I rarely use it.
May 29th, 2007 at 7:14 pm
How do you set up the alerts?
May 29th, 2007 at 7:23 pm
by right-clicking on the watchlist, and adding a new alert to the stock. It’s almost always an alert for crossing a price I select. On rare occasions I also do trendline alerts, which work even if the chart is not up.
May 29th, 2007 at 7:54 pm
I was just wondering if you did price-based alerts or something more automatic. I didn’t know that trendline alerts worked without a chart up.
May 29th, 2007 at 7:57 pm
hey tapeworm,
i like your idea of keeping pnf charts of various plays. i’ve been using them since richard first mentioned them on wallstreak. i’ve found they they’re great for setting trailing stops.
i noticed a couple things about today’s chart. my apologies for coming off as picky.
your data for av seems to be a bit off. it never hit 16.65, even tho thats what’s showing for the daily high. i think it was a misprint. the HOD on my charts is 15.88 @ 12:55ish. the chairman has a similar chart.
the settings on your pnf is at 0.05/1 instead of 0.05/3 you mentioned in your post.
May 29th, 2007 at 8:07 pm
Hey Vincent. I guess you are a lurker on wallstreak, or you post anonymous so I can’t see it (I’ve got anonymous blocked).
May 29th, 2007 at 11:14 pm
vincent: yeah, i forgot to change it to three…i use ib for the data feed, and it wouldn’t be the first time it was off…thanks for the input
richard: i’ll keep posting with the settings i have for now…if u notice something interesting with another setup, let me know