i thought i would start this thread as a continuation of the thread started on elitetrader by holygrail.an excellent thread and will transfer thoughts to trade2win.
if anybody wants to read up on this ,then go to dorseywright.com or better still buy the jeremy duplessis book "the definitive guide to point and figure"
it is a method of reading price action
learning to read price action with p/f charts
a chart to acquaint beginners with their appearance
there is no timescale
chart is of the fste 100.daily data plot
Click the image to open in full size.
you can see the major support level
so i will look at the latest pricen get a so we can get a feel of what we are looking at and relate it to the latest price action
s & P 500.15 min data plot
price is in a downtrend.we possibly reached an "armageddon" level.the chart is strarting to get bullish.the arrow points to a double-top breakout.but look ,we still have a res level above that if broken makes the chart even more bullish
Click the image to open in full size.
Hi dentist007,
Always like a thread about P&F!
In your last post you say that the S&P is in a downtrend and, certainly, most people looking at the chart wouldn't argue with you about that. Can you outline how you define uptrend and downtrend in P&F terms please? I'm curious because the horizontal red line you've drawn at 1095.2 shows a breach of the double top (which is why you've drawn it, I presume) and makes the chart bullish, according to Jeremy du P'. In your view, what else needs to happen (if anything) to be able to say that the downtrend is over and that the index is now in an uptrend?
Cheers,
Tim.
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Quote:
Originally Posted by timsk View Post
Hi dentist007,
Always like a thread about P&F!
In your last post you say that the S&P is in a downtrend and, certainly, most people looking at the chart wouldn't argue with you about that. Can you outline how you define uptrend and downtrend in P&F terms please? I'm curious because the horizontal red line you've drawn at 1095.2 shows a breach of the double top (which is why you've drawn it, I presume) and makes the chart bullish, according to Jeremy du P'. In your view, what else needs to happen (if anything) to be able to say that the downtrend is over and that the index is now in an uptrend?
Cheers,
Tim.
a simple way is to draw a trendline after each signal.however,this would then crowd the
chart with too many lines.so then only draw the ones that the price came off a top/bottom.see the ones that were drawn in the chart below
the downtrend is over when there is a breach of the 45 degree trendline,usually with a signal at or near the trendline.so.yes the chart is bullish in a downtrend.bullish,being the lsat double-top signal