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Rob,
You're on the right track with P&F. I use 4 point boxes on the S&P, thought
I've seen other use 5 or 10. On low price stocks you have to try different
size boxes to see what works best. Below $20 you might use 1/2 point or 50
cents. When you get below $10 I have no idea as I've never tried P&F on
these.
My experience has been on using P&F in futures and I can honestly say it has
turned my trading around. After 30 years in the business, I use nothing
else.
Rob Fletcher wrote:
> Could someone please give me an idea of the correct box sizes for P&F
> boxes. Not in fractions, I trade on the Australian market in dollars and
> cents. I mainly trade in Gold shares where the market price range is
> from say 10c to $5. For example if you were plotting a stock that has an
> extreme range let's say of $2.50 to 10c what box size would you use?
>
> I also trade SPI FUTURES (SnP equivalent in Australia), currently it's
> trading in the 2900's and a range of 40 points a day is not uncommon at
> the moment. What box size would you use in that market.
>
> I know the box size makes a lot of difference as I've tried a few with
> just a few cents difference and suddenly a double bottom appears where
> one wasn't before.
> I've tried posting something at the dorseywright.com forum, but it
> appears they don't let someone on a two week trial post messages.
>
> As you might have guessed I've only just started looking at P&F, but
> from all the TA I've investigated, this method seems very promising.
> Thanking anyone in anticipation.
> Rob
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