Does anyone use point and figure charting?

[Reaver 10]

Just wondering if anyone had any information on the subject or opinions for that matter.

[Bronce 10]

In his interview, Phantom of The Pits expressed his opinion on P&F charting.

 

Apparently, P&Fs are considered more reliable because they filter the market noise...

 

One trader I know trades exclusively on P&Fs and averages very well. Nowadays it's a rarity.

[Reaver 10]

Yeah I agree. I have given it a cursory look and am considering going a little deeper into it. I am always looking for something to give me a better feel for the market.

 

Thanks for the info. I'll have to check out PoP.

[torero 10]

You might want to get this book. There is a great section on P&F charting, also in entries and exits. It's the most anyone's done on explaining these types of charting on books.

 

Technical Analysis of the Futures Markets: A Comprehensive Guide to Trading Methods and Applications

[Reaver 10]

Thanks Torero.

[BlowFish 10]

I have a couple of books on PF

 

http://www.amazon.com/Definitive-Guide-Point-Figure/dp/1897597630

 

Is arguably the best. It is also probably the most up to date.

 

There is a 'classic' but its name escapes me and I am not by the library right now but I though the one linked covered everything the other did and then went a wee bit further.

[torero 10]

Excellent recommendation. I think I'll order this one just to get a better understanding on how to use it. Thanks, blowfish.

[Reaver 10]

Yeah looks good Blowfish. Thanks. I am always on the lookout for new ideas to test out. My main project now is MP, but P&F reminds me of an old school version of follwing supply and demand, so I am betting they are highly correlated...Thanks for the info!

[BlowFish 10]

I found it a pretty nice book it actually made me want to incorporate (or even replace!) my charts with P&F. At the time that wasn't appropriate but I'm sure I'll revisit it one day. One of the nice things was that it discusses shorter time frame charts. One of the nice things about P&F is that I think you can probably come up with more disciplined (even mechanical) ways to trade fairly simply.

 

Cheers,

[Reaver 10]

Blowfish,

 

Thanks for the info. Would you say that taking the time element out of the equation was beneficial, or merely another way of seeing the same stuff?

[BlowFish 10]

It certainly focuses you on price (which I guess is king). I think it was in that book that he proposes a simple X box reversal system. Doesn't get much easier than that as a basis for a simple trend following system. It's an interesting way to view the market that's for sure.

[Reaver 10]

Yeah good point, thanks man.