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Date/Time: Sat, 21 Dec 2024 13:19:05 +0000
[User Discussion] - 1 Box Reversal Point & Figure Chart With 'One-Step-Back'
View Count: 3618
| [2014-12-07 19:29:39] |
| ged - Posts: 233 |
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Jeremy du Plessis's The Definitive Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method/i] is indeed a finely done and definitive work on the history, construction, use and interpretation of Point & Figure charts in their various configurations. du Plessis spends considerable time discussing the important 1 Box Reversal P&F as this chart is of particular value to the short term, intraday trader. Among P&F charts, a feature totally unique to 1 Box Reversal P&F's is that they must be so constructed as to permit the display of both X's and O's in the same column when permitted under 'one-step-back'. One-step-back is a simple rule unique to 1 Box Reversal P&F's and is easy to provide for in P&F software applications. If the 1 Box Reversal P&F is not constructed using one-step-back, it "has important implications for analysis of congestion and establishing price targets" per du Plessis. du Plessis writes, "Figures 2-8 and 2-9 [in Chapter 2] show the wrong way and the right way to construct a 1-box reversal Point and Figure chart. Unfortunately, the wrong way, where a new column is started every reversal, is sadly seen all too often." Sierra Chart has a very good Point and Figure study, but it lacks one-step-back for 1 Box Reversal P&F's. Please consider adding this important feature in a future release. |
| [2014-12-08 00:08:39] |
| George - Posts: 60 |
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It is already included in the P & F Study. On the Settings and Inputs tab, where it says " Allow One Box Reversals", put the Input Value to "No".
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| [2014-12-08 00:34:14] |
| ged - Posts: 233 |
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Thanks George, but I do not believe that feature accomplishes what I am talking about. When the input value is set to "No" for "Allow One Box Reversals", it does not cause any single column to appear with both X's and O's in it (my Box reversal size is 2 points). If you set the input value to "Yes", then you will see columns appear on the chart with 1 'O' in them, for instance. But again, changing that setting does not cause the 1 'O' to appear in a column with X's, when it could do so per the 'one-step-back' rule. I would be pleased to be wrong, but I don't see it in the way the charts build. |
| [2014-12-08 00:39:58] |
| ged - Posts: 233 |
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Just as a follow up George, sometimes there must be a 1 Box Reversal (i.e., when the current column does not have available,i.e., already used, the box needed by the 'one-step-back' rule). In this case a new column must begin with a 1 Box Reversal, so you would not want a setting that would prevent that from happening.
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| [2014-12-08 03:02:52] |
| George - Posts: 60 |
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Ged, you are right it does not put an "O" and a "X" in the same column, but the chart is created correctly. It does not matter, for example, you could have a chart that is only X's, not with SC, all that really matters is that all price reversals of One full point are plotted.
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| [2014-12-08 04:00:34] |
| ged - Posts: 233 |
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Thanks again George, I appreciate the dialogue. It's true that a perfectly fine P&F can consist of all X's, but not if X's only represent advancing price. In an 'all X' P&F chart, advancing prices and declining prices are both represented by 'X's'. However, the columns in the chart still alternate between advancing price X's and declining price X's. This doesn't alter, one way or another, the issue I am referring to. I used an X and O P&F, not only because it is the way my P&F charts are constructed, but because it makes discussion of the one-step-back rule less confusing when you can refer to X's and O's than only to X's, or only to O's, or only to check marks, or whatever someone might choose to use (in a hand drawn P&F for instance). As you no doubt know, a 1 Box Reversal P&F doesn't necessarily reverse on 1 point. It may be a 2 and 1 Box, or a 4 and 1 Box, or a 50 and 1 Box, or anything in between or larger. The value and applicability of the one-step-back rule, for a 1Box Reversal P&F remains. |
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