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Denco, can you help me see the light in this scenario. As I look at today's High/Low P&F where I see the high reached 4.0 and the low 3.95, why then did not the chart represent the 3+ point reversal which should have resulted in a shift to the right with a column of Ohs from 3.98 down to and including 3.95? For some reason, I'm not seeing that, as illustrated below:
SI....the low of the day was 3.94 not 3.95...not sure if that alone answers your question.Originally Posted by siriusly_invested
I WIN. GAME OVER. CHECK MATE. I CONTROL YOUR EVERY MOVE. WATCH WHAT HAPPENS NEXT
SIRI opened at $3.97 today but closed at the same price of yesterday's close of $3.96. No change in price from yesterday's and today's close.
I WIN. GAME OVER. CHECK MATE. I CONTROL YOUR EVERY MOVE. WATCH WHAT HAPPENS NEXT
Wrong answer to the scenario presented. The chart in question is the daily High/Low chart which, based on the rules should have started a column of "Os" at 3.99 down to and including 3.84 on the price legend, indicating the range and direction of price movement during the day. Rule states that if the price changes three or more blocks in the opposite direction then the symbol in this case changes from an "X" to an "O", and begins the downward column to the right side of the column of X's............ It's hard to explain to anyone who has not studied P&F charting, but if not mistaken, that's the way it goes....... I hope Denco can either agree with me or show me where I'm wrong.
We printed a new high ( from previous day ) on the High/Low when we hit 3.97 today that keeps it in a column of Xs no matter where it closes for today. On Monday we will begin the day in a column of Os since we closed well below the high of 4 unless we gap up and open at 4.01 or higher. If not then we will be in a column of Os unless we hit 4.01 at some point intraday. At that point we will revert back to the same column of Xs as today and the O column will disappear.
Last edited by denco1; 10-16-2015 at 05:26 PM.
Not sure about the 3 point reversal SLY. I have never seen the chart lay out 2 columns intraday other than the scenario above where we start with a new column the next day but reverse higher or lower intraday to take out the previous days high or low depending on the what column we were in the previous day.
EDIT: It is possible that the column of Os on Monday will be due to the 3 point reversal. If we had closed at 3.98 or 3.99 we may have stayed in the column of Xs on Monday. If prices then trended lower instead of higher the column of Os would have then appeared.......just a guess SLY.
Last edited by denco1; 10-16-2015 at 05:27 PM.
Shocker!
Aw Geez Denco, and just when I thought I had it figured it out, you had to say. "just a guess". Now I'm really confused. I have the Dorsey book in hand, so I think I'll consider your explanation and see if I can confirm what you said by reviewing if or what Dorsey has to say in this case....... Thanks.
Let me know if you find the definitive answer SLY. When you get a moment check all reversals on both the High/Low and the close. The minimum # of Xs or Os is 3, thus the 3 point reversal. You will not find a reversal with 1 or 2 Xs or Os....but, you will find a few with only 3 which seems to be the minimum requirement for the change in trend. You will find more 3 X or O reversals on the Closing chart.
EDIT: Those short term 3,4,5 X or O reversals seem to be head fakes because of the short trend as they quickly revert back to the larger trend up or down. Other times you will see several shorter term trends during consolidation triangles etc...
Last edited by denco1; 10-16-2015 at 06:05 PM.
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