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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (42760)	12/22/2000 7:22:20 AM
From: Atin	Read Replies (1) \| Respond to of 44573

With "normal" P&F high/low charts, one tries to extend the current column and only when it cannot extend does one look for reversals. So if you are in a column of Xs, you first look at the high of the new period and see if you can draw another X (or more). If you can, you draw them and you're done. If not, you then look at the low to see if you have a reversal. If you do, you move over one column and draw the reversal. Favoring reversals switches the order of the tests. If you're in a column of Xs, you first look at the low to see if you have a reversal. If you do, you move over one column and draw the reversal. If not, you then look at the high to see if you can draw one or more Xs. Favoring reversals only works right with tick charts because that's the only one where you won't miss any ticks. But I am using them with 1-minute charts too because it is good enough. The problem with favoring reversals is that say you were in a column of Xs and you jumped up another X but reversed quickly in the same period so that you actually went below the previous period's reversal level. A new column of Os will get started and you'd never see the latest highest X. Basically you want to use it with the smallest timeframes, tick, maybe 1-minute and 5-minute. But no bigger. -Atin