Thanks - it draws a nice P&F using EOD data.
Thanks for your reply.
By scaling up the box size in relation to the price (as is the traditional method) you are essentially crudely approximating a logarithmic scale. The advantage of using software to draw charts is that it will implement true logarithmic scaling of the box size for you (for example, box size scaled to 1% of share price).
What I find interesting from your discussion about your exit from WTF in the WTF thread (which you link to above) is that you used the price chart with SIROC and OBV to determine your exit which by my analysis got you out of the stock a bit closer to the top than from using a bearish reversal stop loss in the P&F which didn't show up until the price had got to 5.55 (the filled in circle in the image below). Whereas you got out on the 31 Jan a few percentage points higher somewhere between 5.83 and 5.74
View attachment 51990
Do you commonly find that your other technical analysis gets you out a bit higher to the top than using a bearish break signal on the P&F?
By the way, you can right click on the post number in a thread to copy the url which will take you directly to that post.
Bear in mind Three box reversal chart is an intermediate trend chart . It is NOT going to be the earliest
Do you want to use someone's buy and sell signals ? or do you want to read the buying and selling pressure ?
Even to signals ,,, Always watch what happens with high and low poles ,,, You should be on alert as soon as one forms ( before the next column forms ) !
a column ends with the last urgent buyer or seller ... WHAT HAPPENS THEN matters
Your top is a very clear high pole ,,, It then retraces past 50% ... WHY . ( and what about new ground made , THRUST was it less or more than the previous columns )
What are you going to do at that point ?
you could sell as soon as the next up column make a lower high ( Wyckoff , what does he say about buy and signals on p&F , why wait for a signal ... EVERY BOX IS SIGNALLING )
look always for rising points of support or declining points of supply .. very significant early signalling !
look at 50% levels of columns and phases .
Three Box reversal charts are fine .
But be clear on the difference of reading buying and selling pressure , what a P&F chart is revealing in it's flow , and a mechanical overlay of someone's buy and sell signals ( double tops etc )
also read Wyckoff's Active Tape reading course ( not the one most people have , the other one ( , which is all about P&F and reading the buying and selling pressure . )
Think of P&F as a superior market profile. Then realize that buy and sell signals are what you determine , and that accepted P&F is just some rigid mechanical system of buys and sells , that has little to do with P&F charting itself.
Do what ever you want --> BUT KNOW WHY !
Start by understanding the FLOW of the P&F chart , is in a ( aggregated ) special way the flow of orders .
And that these orders are flowing in relation to certain things that matter ( Here is understanding )
Motorway