SIRI Monthly Thread October 2015 (with NFL Chat)

[siriusly_invested]

Additional Info. re. P&F charting using www.stockcharts.com., Once you locate the P&F charting selection, and you enter, for example SIRI as the symbol to chart, look in the parameters below the chart where you need to select a couple of non-default options.

Locate the "Type" option; this is where you can select either "Close Only" or "High/Low"... Based on the confusion yesterday when trying to understand "high/Low", I would recommend you begin with "Close Only" which yields a chart printed only on the closing price of the day.

Over in the right side of that section (I think), you can select the Price Objective to be "breakout".

In the Chart Scaling section, select User Defined in the Method box, and to the right of that you leave the Reversal as 3 boxes and the box size as .01 (since SIRI is under $5, it mades the chart more sensitive to price movement if the box size is not too large)

You can now select the "update" tab to activate those changes, then select "save as default" button above. Now you should be looking at a P&F chart as of close of business yesterday. Using that chart, you can then browse through the education discussions as you attempt to better gain an understanding of what the chart is telling you.

If you decide to use some other stock symbol for your P&F charting, take a look at the recommended box size settings based on the stock price. For example, (and I am pullin gfrom memory), anything priced between $5 and $20 would use a box size of .5, between 20 and 100 maybe box size of 1..... but please don't take my exact word. Do the research in the education to learn that value.).

Lastly, you've heard me mention a particular book I believe to be widely referred to as "the bible". It is called "Point & Figure Charting" by Tghomas J. Dorsey..... It is highly recommended for those wishing to become fully engaged in the topic.


Here's an example of the parameters panel:

[siriusly_invested]

But Remember...

"There are some drawbacks as well. For instance, volume is not considered, and P&F charts are not good for identifying whether a stock is being accumulated (bought) or distributed (sold)."

I agree Midas, but as I said earlier, it is just another resource in your took kit, and while it doesn't reflect volume, it does depict a very good representation of Supply and Demand, and therefore, illustrates who is in control (buyers or sellers). Use it in conjunction with other tools for other indicators.

[midas360]

I agree... I did "+1" what you said originally... I was just posting the "drawbacks" for those looking to employ this tool. For example, you don't want to use a hammer to remove a bolt (in most cases).

I agree Midas, but as I said earlier, it is just another resource in your took kit, and while it doesn't reflect volume, it does depict a very good representation of Supply and Demand, and therefore, illustrates who is in control (buyers or sellers). Use it in conjunction with other tools for other indicators.

[dm_4]

SI...i did all the steps you listed....came out looking like this. Question is does the cells or rows identify dates ranges on a daily basis. I see i have it set up as daily....but i was expecting to see listed day to day dates such as 10/1, 10/2, 10/3 etc.


PF1.PNG

[siriusly_invested]

SI...i did all the steps you listed....came out looking like this. Question is does the cells or rows identify dates ranges on a daily basis. I see i have it set up as daily....but i was expecting to see listed day to day dates such as 10/1, 10/2, 10/3 etc.


PF1.PNG

DM, glad to see I might have struck a nerve of curiosity. In answer to your question, nope, it is not showing dates of those prices. In fact, one column such as that tall column of x's in the right half might be representative of several weeks of price actions. If you study the basic education, you should locate a discussion on this question, and in your particular chart, you will see only a few indicators of date refernces shown at the bottom margin of the chart where (my eye are failing me so I have to guestimate) you see simply the month of the year i.e. 01, 4, and 12 (I think) which states the month illustrated by the column above the number. Does that make sense?

Maybe you didn't see my last explanation of how to set up the non-default parameters. Your chart uses defaults so that it is not granular enough at courrent prices to be useful. If you will change the box size to .01 as I explained, you will then see a realistic price representation. How's that for mass confusion?

[siriusly_invested]

If this is helpful, here is how my "close only" chart looks, using the parameters I recommended.

[dm_4]

DM, glad to see I might have struck a nerve of curiosity. In answer to your question, nope, it is not showing dates of those prices. In fact, one column such as that tall column of x's in the right half might be representative of several weeks of price actions. If you study the basic education, you should locate a discussion on this question, and in your particular chart, you will see only a few indicators of date refernces shown at the bottom margin of the chart where (my eye are failing me so I have to guestimate) you see simply the month of the year i.e. 01, 4, and 12 (I think) which states the month illustrated by the column above the number. Does that make sense?

Maybe you didn't see my last explanation of how to set up the non-default parameters. Your chart uses defaults so that it is not granular enough at courrent prices to be useful. If you will change the box size to .01 as I explained, you will then see a realistic price representation. How's that for mass confusion?

Ok so yeah the 1 4 12 was throwing me off a bit...had no idea what those 3 numbers were...thanks for answering that. Those are months of year...got it.

I saw your explanation of non default paramerters but i prob did not make the .01 change. Will go do that now.

About a two years ago i bought the PF chart for dummies book....unfortunately i really never got around to looking at it. Maybe its time to wipe the dust off and start reading up on it a bit.

If i recall correctly BM was a huge fan of PF and Dorsey.

Thanks for the info and help SI....keep posting PF stuff...i will be following.

[dm_4]

If this is helpful, here is how my "close only" chart looks, using the parameters I recommended.

Nice...thanks for posting....im gonna go follow your directions again..see if i can get it to look like that...gotta make the .01 change this time...think i forgot that step last time.

[dm_4]

Looks like yours now I forget to change to .01 last time. Ty SI!

You and Denco should give a PF lesson of the Day post everyday! lol.

PF2.PNG

Do you use the same parameters for your high/low?

[siriusly_invested]

Nice...thanks for posting....im gonna go follow your directions again..see if i can get it to look like that...gotta make the .01 change this time...think i forgot that step last time.

I never thought I'd hear myself give any amount of credit to BM, but I have to admit if not for him I would have not idea what P&F is, and would not have earned a respect for what it can do for the trader...... note, I said trader, not investor.......... I think it is obvious this is a method designed to help with the in and out decisions as opposed to the buy and hold approach.

PS. My chart is cut off about mid way down due to limitations of the Snippet tool........... It shows all that is important though.