Hi Sam O
Darvas could be applied to a PnF chart. What you would want to determine is the trading timeframe you want to watch, then look for breakouts of prior trading range clusters, boxed to whatever timeframe you were using. Here is a longer term PnF for the DIA that shows where prior boxes of trading range were broken out and held higher support. Any breakdown of a prior 'box' area, below the bottom of the previous box, would be a potential breakdown of the trend and a signal to sell or go short. You can see in this longer term example that the DIA has been trading in prior 30-40 pt boxes since early 03, and the spikes into higher areas have seen eventual continuation, perhaps with the exception of the last spike high in Jan? Not sure if this is what you are asking, I hope it helps. Sincerely, Bob :^)
Darvas could be applied to a PnF chart. What you would want to determine is the trading timeframe you want to watch, then look for breakouts of prior trading range clusters, boxed to whatever timeframe you were using. Here is a longer term PnF for the DIA that shows where prior boxes of trading range were broken out and held higher support. Any breakdown of a prior 'box' area, below the bottom of the previous box, would be a potential breakdown of the trend and a signal to sell or go short. You can see in this longer term example that the DIA has been trading in prior 30-40 pt boxes since early 03, and the spikes into higher areas have seen eventual continuation, perhaps with the exception of the last spike high in Jan? Not sure if this is what you are asking, I hope it helps. Sincerely, Bob :^)
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
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