Intraday chart analysis
This is akin to constructing daily and weekly bar charts. For many traders intraday analysis and trading is preferred. The good news is that PnF analysis is a powerful technique for evaluating these smaller time periods. PnF scales down handily from 60 minute to 5 minute data.
Only two settings need be changed StockCharts. Now you are ready to create intraday PnF charts. In Wyckoff we seek to identify a Cause that will lead to an Effect trend in prices worthy of a campaign. Causes built within intraday timeframes are often unnoticed, but can be counted, projected and campaigned.
The counting techniques are essentially identical to the methods we have already studied. As in all intraday analysis, events happen quickly and require an intense focus on the data. This 2-hour vertical chart will be our roadmap for the PnF chart analysis below. Note how well the Wyckoff analysis works on this shorter time frame. We will use these anchor points for taking our counts on the PnF charts.
The count procedure is the same as for any PnF chart. Multiply 24 by the 1 box method, by the. From the count line of Volume should pick up at this time to confirm the setup. Under the previous bar's lows or under intraday support. Gentle pullback of bars average to the simple moving average resistance zone on decreasing volume. Below the previous bar's lows or using an intraday breakdown.
A type of Phoenix. A stock coming out of a downtrend with rounded lows that puts in a slightly lower high and then pulls back gradually to put in a higher low. On a breakout higher out of the pullback.
There will often be a moving average crossover such as a cross in the 10 and 20 sma Stop: Under lows of the pullback. Highs of the beginning of the cup or an equal move out of pullback as compared to move off lows. High left shoulder followed by a higher high head and then a lower high right shoulder which is comparable to the left shoulder.
Breakdown from the neckline. The neckline connects the lows on either side of the head. Alternative and preferred entry is using a bear flag breakdown to enter after the right shoulder has formed. Over the past pivot high or 20 simple moving average resistance Target: Previous reversal prices and support zones such as a 5 minute sma if the setup occurs on the 15 minute chart.
Wide range bar on increased volume preferably at a strong support level Entry: Above 5 minute high on a gap up or an intraday breakout to highs. Under current or previous day's lows Target: Pullback higher of bars comparable to or stronger than previous decline, usually off lows on high volume, to 20 simple moving average resistance 3. Under previous or current day's lows on a daily setup. Usually I will use current day's lows or a break in intraday support. For example, a setup on the 2 minute chart has a target of 5 minute 20 sma and a setup on the 5 minute chart has a target of the 15 minute 20 sma.
Also watch for equal moves. Low left shoulder followed by a lower low head and then a higher low right shoulder which is comparable to the left shoulder. Break higher from the neckline. The neckline connects the highs on either side of the head. Alternative and preferred entry is using a Phoenix to enter after the right shoulder has formed. Under the past pivot low or 20 simple moving average support Target: Previous reversal prices and resistance zones such as a 5 minute sma if the setup occurs on the 15 minute chart.
We will use these anchor points for taking our counts on the PnF charts. The count procedure is the same as for any PnF chart. Multiply 24 by the 1 box method, by the. From the count line of For many intraday traders this is a meaningful campaign objective. The Cause is built over about a four day period. Now that the objective has been reached there are a few options to consider.
First would be to stay in the trade and wait for evidence of distribution for an exit, which could come at higher prices. Or a Reaccumulation could form to propel prices higher. Finally, you could take profits and wait for the next Cause to be built. Generally this method is better for generating bigger counts than a 1 box method chart.
And thus bigger Causes can be counted for larger moves. At the count line 11 columns are multiplied by the 3 box method and then by ATR scale of The lower objective is The count line is at the low of Does it have further to go?