PnF to Increase R:R | Move the Markets

Guest Post: PnF to Increase R:R

Posted on June 4th, 2007
Written by Mr. White Folks
Posted in: N/A (old archives)

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

I was stopped out of my 1st trade this morning (red 1). My risk was extremely small (5 cents). The second trade (light blue 2) did not allow me a low risk entry. I watched as oil continued to climb without me.

However, at 11:45 the QM printed a shooting star on heavy volume. High volume late in the rally can often signal at least a short-term correction. I looked to the PnF chart for my entry. It pulled back to the 45 degree trendline, and I went short. With my stop set at 7.5 cents, I was able to pull out a nice R gain of over 5:1.

Comments

john

richard: i think that's why its easier to write trading books then to actually trade...with any idea, u can come up with many examples that prove it...only time will tell if its a meaningful factor
Richard

I saw another 45-degree thing today, I think in UAUA or CAL, on the 0.1/1 chart. It was one that pierced the trendline and then reversed again.
john

thanks
Prospectus

Nice trade! Keep your PnF setups coming!

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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.