View attachment 89769 All good . had to re- count still came up with low 9000s
If you look at the last weeks action on P&F chart it looks very normal. still bullish
TrippleB, a couple of observations about the charts you posted.
I'm not sure that a box size of 1 is meaningful for the XAO in proportion to a price value within the range of 6000. With the disclaimer made above that I am not really a T/A person, I vaguely recall reading that the box size should be around 2% of the price give or take a large margin. Box size and reversal multiple are very arbitrary decisions for the chartist to make, especially if plotting a chart over time when there will be significant range in price (hopefully to the upside over the long run) . I reckon someone using a reversal of 1x versus 3x would be looking for different patterns and counting methods.
My understanding is that P&F charting grew out of tape reading. In this regard I can understand how P&F could be a tool seeking to discard the noise and amplify the signal from the course of trading in a stock. Yet here are people like me looking to cutely apply it to a market index over a multi-year period, perhaps using the idea that patterns in nature recur in a fractal manner along a time scale.
P&F aims to remove noise from the trend (and trend reversal signals). This is especially so for sideways movements. The cost of that is that time is also removed as a factor. Time is not a constant on the x axis. Yet, time is money, especially in terms of opportunity cost: the lost opportunity to invest in bonds, etc and central to calculating net present value.
For me, given the above, and my earlier stated reasons for using P&F to eyeball a stock price in relation to its trend on the market, I'm not that convinced about using P&F counting methods to determine target prices is worthwhile for my style of investing. There is no one prescription as to how to size a P&F box and what reversal multiple to use. Given that I am not a T/A by breading, however, I have no empirical evidence one way or another. My targets are usually set based on F/A but entry or exit decisions may be further influenced around trend/momentul - well that is my strategy at least!