First Entry of the Year

by 11:23 0 comments
I spoke a lot about Point and Figure towards the end of 2012 with a view to using it a lot more during the coming year. In keeping with that idea, my first entry of the year was point and figure based.

It was a little different to the PnF entries i've taken to date in that I incorporated the volume that me and a friend successfully bodged / programmed into the study.

I'm not sure if I spoke about it or already or whether it was something I intended to talk about. On all my point and figure charts I use a 10 pip box size and 3 box reversal. So the smallest column you'll see on my charts is a reversal column of 3 boxes, 30 pips. For a long time before even adding the volume to the PnF charts I had considered these 3 box reversals as similar to No Supply (3 Os) and No Demand (3 Xs). Once we got the volume feed working I soon discovered that a lot of these reversals do have volume less than the previous two. Like any signal, it has to be in the right area. So i'm obviously not going to take every one that comes along.

With this in mind I placed a sell order yesterday that had three characteristics. 1. A No Demand reversal on the PnF chart, 2. A basic PnF sell after this ND. 3. It was breaking below a high volume zone carried over from my 1hr HLC chart.

Entry and stop mentioned on the chart, my stop has since been moved to 1.3060 above the last 3 box reversal.




28. Forex. Trading. Music. Beer. Food. Travel.


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