• Trading

    Posted on May 29th, 2007

    Written by Mr. White Folks

    Tags

    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.

    pnf-for-dummies-1.JPG

    This entry was posted on Tuesday, May 29th, 2007 at 6:38 pm and is filed under Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
  • 9 Comments

    Take a look at some of the responses we've had to this article.

    1. May 29th
      Reply

      That’s a great idea. I’m skeptical that 0.05/3 will always work well, but we’ll see!

    2. john
      May 29th
      Reply

      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

    3. May 29th
      Reply

      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.

    4. How do you set up the alerts?

    5. May 29th
      Reply

      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.

    6. 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.

    7. Vincent
      May 29th
      Reply

      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.

    8. May 29th
      Reply

      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).

    9. john
      May 29th
      Reply

      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

  • Leave a Reply

    Let us know what you thought.

  • Name (required):

    Email (required):

    Website:

    Message:

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