subject: The Definitive Guide To Swing Trading Stocks Pdf - Point And Figure System That Identifies Massive Market Moves To Help Capture 1000s of Pips! [print this page] The Definitive Guide To Swing Trading Stocks Pdf
Point and figure charting represents the price action in a totally different, rather a ridiculously different manner, as compared to the most familiar barand candlestick charting. Point and figure trading uses this point and figure chart in focusing exclusively on the price action. Now, point and figure (P&F) trading is somewhat similar to the familiar support and resistance breakout trading. The Definitive Guide To Swing Trading Stocks Pdf
P&F charts are available on almost all the charting platforms. P&F Charts focus exclusively on the price action excluding other familiar elements like the time, volume and open or closing price of the currency pair or for that matter the security.
P&F trading is very well suited to the currency market as it solely focuses on the price action, the most important thing in technical analysis. What this means is that when you use the P&F Chart it removes the clutter from the chart and presents clear evidence of the support/resistance, trend and the breakouts.
A Point and Figure (P&F) Chart comprises of columns that are represented by Xs and Os. X means the price has risen in the column while an O means that a decline in the price has taken place. When the price reverses direction, another column is added.
Now as mentioned above, time, volume,open and closing prices are all removed on the P&F chart and only when the price increases by a fixed increment, the column moves in the chart. Now, this fixed small increment is known as the BOX SIZE.
Box Size is the minimum amount the prize is supposed to move before another box in the column is created. Suppose, you set the box size to 10 pips which is the usual practice among the Forex traders though you can choose any settings of your own.
Now, the column of X means rising prices. Suppose there are 10 boxes in the X column, this means that the price has continuously moved in increments of 10 pips for the 10 boxes to be added to the column. Now, you need to note this fact that there is no mention of the time it took for the 10 boxes to be formed as well as the open or the closing price. The Definitive Guide To Swing Trading Stocks Pdf
In order to add another X to the already 10 Xs that are present, the price should move 10 pips above the last box. On the other hand, suppose the price instead of increasing by 10 pips declines by 10 pips. Now, he second most important variable that is very important for the P&F chart is the Reversal Amount.
So, price has to reverse by this amount before a new column will be added to the chart. Suppose, you have set the reversal amount to 3 boxes or 30 pips. Now, instead of adding an X to the existing X column a new column will be added with an O if the price declines by 30 pips. If the price further declines by another 10 pips, another O will be added to the column.
Whatever, P&F Charts are ideal for trading support and resistance breakouts. Eric has created an excellent Forex Point and Figure System that you can use to capture massive moves in the market. This Forex Point and Figure System works on the MT4 Platform. You can use this P&F Trading system to identify trends before everyone else and capture massive pips capturing the market move before everyone else. You can also use the P&F Trading System to set tight stop loss. Whatever, you can testthis Forex Point and Figure System RISK FREE for 60 days on your demo account! The Definitive Guide To Swing Trading Stocks Pdf
The Definitive Guide To Swing Trading Stocks Pdf - Point And Figure System That Identifies Massive Market Moves To Help Capture 1000s of Pips!
