On a P&F chart a column of O's exceeding a previos column of O's is called a sell signal ( vice versa for a buy) but I advise to always look to the left and see where it's coming from... For example - is it a continuation( successive) signal? Was there a big base that the signal came after? What was the trend leading up to the signal? Is the signal coming from a previos area of S/R from the past?
It's important to "tune" your chart to capture the volatility you want to trade for a particular market. I use two for day trading ( one with a larger box size for when things get choppy on the smaller box sized one) so that I can see the forest through the trees- also, when they are both in agreement- I had better be trading in that direction or I better have a damn good reason to be counter trend bcuz chances are I'm not seeing things very clearly or just being stubborn if I'm not.
Short answer is- Yes, you are reading the charts properly
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Based on above P&F charts and other parameters I took short on YM at 17580 and covered at 17530 (ufff something positive after so many days). I should have take Oil short also 38 but thought it is oversold.
Edit: covered mainly due to pending jobs report.
Edit: Seriously market always fools happened twice for my swings once for oil short before and YM now.
"I used to fade all the weaknesses at the starting stages of my journey with YTC and I was doomed. Then, I started fading weaknesses against the future bias and the losses decreased, but I was not profitable yet."
"Then I started fading weaknesses in the direction of the future bias at the price levels given by the market with its past data. I started getting profits."
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I did good in January and ok in Feb mainly because of volatility. Majority of my profits came from longs in January and Feb not by shorting even though counter trend trades at that time I placed orders at strategic levels such as pivots, ADR_L and sometimes 1.5ADR_L and I got bailed out because of volatility. That same principle didn't work in March and this is zillionth time I am learning every time I think this time might be different but market laughs at me
Anyway these days are I am actually doing ok because I am bailing out when I am wrong not holding on to the loosing trades (those three days were mix of revenge trades and blindside shots by market).
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