Point and Figure Charting

[gassah]

The attachments will get us started. The first one is from Wyckoff, Section 4.

[Sledge]

I have dabbled with P&F charts and although every site I went to said "These are so simple to use" I know there is plenty more than that. I welcome a nice in-depth discussion of these charts as I am as green as grass with them. Hoping we can get some seasoned P&F chart users to give this thread a go!
Sledge

[mister ed]

This is a useful article from Hank Pruden, and in it he explains one take on using the Wyckoff method. In the article you will see numerous references to how Pruden uses the P&F chart as part of the procedure for setting up buys and sells. The article is not about P&F itself, and frustratingly the only two P&F charts are drawn on only the last page of the article, but hopefully value can be found in it for the discussion started here, especially when read in conjunction with the two articles Gassah has linked in his OP.

Link to article http://www.hankpruden.com/WyckoffBuy-sell.pdf

Or, download from attachment, below.

[pnf.guy]

I really hope this thread becomes active. I am an avid P&F craftsmen and am looking for a nice place to have a serious discussion of P&F principles. Traders Laboratory is the best trading forum on the net. Lets make this wyckoff forum the best forum on the net as well. By the way there is decent thread about P&F over at elite trader. If your a beginner to P&F take a look over there its a great place to get started.

[gassah]

W simply used price levels in a range with a fair number of boxes to project counts. Attached are 50 and 100pt charts of the DJIA with 1 box reversals. Simply count the number of boxes in a line, multiply by the number of points in a box and subtract (or add) that to the price at the level the count was taken from. Using the 100pt chart there are 11 boxes along the 12900 line: 100pt X 11 = 1100. 12900 - 1100 = 11800. On the 50 pt chart: 21 boxes X 50 = 1050. 12900 - 1050 = 11850.

Don't get hung up on the precise projection numbers. In this particular situation I'm more interested in knowing if there is enough of a count to make it to the other side of the larger DJIA range IF it decides to head down. The count can also be used to project upwards from 12900.

[Tannism]

Penn had a consolidation period at the halfway point of the move. It is the accumulation vs distribution question here. Maybe PnF can give some insight.

I see potential cause to go to the top again. There have been several recent big bar down weeks when long term support held.

As a whole, casinos are not strong, but Penn has held up better than most. The DJ casinos index appears to be stabilizing.
http://tinyurl.com/5uk7gm

[gassah]

	Quote:	Tannism
	I see potential cause to go to the top again. There have been several recent big bar down weeks when long term support held.

Hopefully the count from the top won't be fulfilled and the lower base isn't re-distribution. Along the 55 line is a count of 31 projecting down to 24-29.

[gassah]

the chart...

[Tannism]

Very helpful reply, thanks.

My intraday tools don't go back far enough here on User defined PnF, but do on %PnF. I think it is related to the relatively large % move PENN has made.

Using 3 %PnF, I seem to be in the zone, especially comparison with Db's boxes. It is maybe a clue as to why he doesn't find PnF useful.

My % Pnf Calculations are from the du Plessis log charts.

Thank you for providing a place to post PnF.

[DbPhoenix]

	Quote:	Tannism
	Using 3 %PnF, I seem to be in the zone, especially comparison with Db's boxes. It is maybe a clue as to why he doesn't find PnF useful.

Though to avoid misunderstanding, I should point out again that I don't personally find it useful. This is not to say that it's worthless or that many people don't profit from its use. Perceptual differences among traders are not uncommon.