Box-value Slots
by PRASHANT SHAH -
After understanding the techniques of identifying patterns and analyzing P&F charts, the important question that will pop up is: how do we determine the basic parameters to construct a P&F chart? Because, the analysis and various P&F patterns and setups depend on the parameters we choose to construct the chart. Below are the parameters that ... Read more
High-Low Box-values
by PRASHANT SHAH -
High–Low Charts It must be obvious by now that P&F charts can be plotted with just one price. Charts plotted with closing prices will generate patterns based on the closing price. High–Low method of plotting considers either the high or low price made during the day for plotting. If previous column is of ‘X’ and ... Read more
Closing or High–Low
by PRASHANT SHAH -
The next obvious question would be: Which method should be used, closing or High–Low? Both come with their own set of issues and advantages. A chart plotted with closing prices mark the column at end of the day, hence signals appear late but the charts plotted with High–Low price produce more columns of ‘X’ and ... Read more
Time Interval Charts
by PRASHANT SHAH -
Time interval charts are the ones plotted on any time frame lesser than daily. P&F charts can be plotted using the price from any time interval such as hourly, 30 min, 15 min and so on. They can even be plotted using tick-by-tick prices, which is the origin of P&F charts but they are best ... Read more
Other Methods of Plotting
by PRASHANT SHAH -
ATR-Based Box-Values We discussed Average True Range (ATR) in the chapter on indicators. There is a method of plotting P&F charts using the ATR values. With this approach, Average True Range of any instrument is calculated on bar charts, and a P&F chart is plotted with that ATR-based box-value. For ATR, 14 is a popular ... Read more
