Intro & Methodolgy
by PRASHANT SHAH -
The biggest advantage of Point and Figure patterns is that they are objective in nature. Hence, they can be easily back-tested to analyse past performance, but the task is not very easy, given the multiple parameters to plot in P&F charts. This chapter deals with these difficulties and we test the P&F patterns from different ... Read more
Close-Only Method Testing
by PRASHANT SHAH -
Close-Only Method Before we analyse the testing results, it is important to understand that for back-testing with closing price method, the box-price that qualifies the pattern is considered as an entry price. It may differ from actual price because it gets updated at the end of the day and it also doesn’t take gaps into ... Read more
High-Low Testing
by PRASHANT SHAH -
High–Low Technique of plotting and analyzing High–Low charts were discussed in Chapter 5. High–low charts are horizontal in nature; hence, basic signals are not applicable on them. To avoid the presentation of unnecessary tables, we will move to testing the pattern performance based on profit exit methods because exit based on basic signals is not ... Read more
Intro & Methodolgy
by PRASHANT SHAH -
The biggest advantage of Point and Figure patterns is that they are objective in nature. Hence, they can be easily back-tested to analyse past performance, but the task is not very easy, given the multiple parameters to plot in P&F charts. This chapter deals with these difficulties and we test the P&F patterns from different ... Read more
Close-Only Method Testing
by PRASHANT SHAH -
Close-Only Method Before we analyse the testing results, it is important to understand that for back-testing with closing price method, the box-price that qualifies the pattern is considered as an entry price. It may differ from actual price because it gets updated at the end of the day and it also doesn’t take gaps into ... Read more
High-Low Testing
by PRASHANT SHAH -
High–Low Technique of plotting and analyzing High–Low charts were discussed in Chapter 5. High–low charts are horizontal in nature; hence, basic signals are not applicable on them. To avoid the presentation of unnecessary tables, we will move to testing the pattern performance based on profit exit methods because exit based on basic signals is not ... Read more
