Hi
Trading such chart pictures can be quit interesting and profitable. Many have a problem to accept the ranges. I will show you later on other charts, which also will point in that direction, but have nothing to do with P&F. Markets trade many times in ranges. The only thing is: We have to find them in the different time frames. It is some times a search, which can take time.
Summasumma: If you use P&F and you find your box and reversal pattern that will be the pattern for the moment.
I told in the last post: That is the trick or if you want the difficulties with P&F. You have to search for what works best. So, the picture I showed looks fine with that range. If you choose an other time frame, you some time will have to search for an other tuning. There is no specific rule like many times in trading there are no rules, except money management. Just adjusting and fine tuning of the given tools and strategies we trade.
As far as I know, the most of you are future traders. Trading such chart pictures with a pure future will not open to many strategies. You will have to be creative with your money management.
Trading such charts with options and futures opens an other world. I can give you easily at least ten different strategies you can trade on such ranges:
Just some ideas which pop in my head: Back spreads, Credit Spreads, Condors,, Calendar Spreads, Butterfly's, Future spreads or pure naked option trading. Leg in with one option, start with two options, start with three options, start with four options. We now already have more than ten ways and I not even mentioned any synthetic strategies.
P&F is quit interesting for position trading with the most simple tool, like AW10 also mentioned. Agree with that 100%.
By the way: Thanks to AW10 and Linkon7 to explain and giving ideas to the Indian market. Thank you.
Today I changed the time frame to three days and I fine tuned the S&R lines. I did not change any box or reversal sizes. As you see, you get now more ranges in a shorter time frame and you have more choices to place your orders and fine tune your money management.
Tc and do some sport to keep your buddy in healthy conditions.
DanPickUp