Date/Time: Fri, 20 Jul 2018 10:43:56 +0000
Post From: 1 Box Reversal Point & Figure Chart With 'One-Step-Back'
|ged - Posts: 131|
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.