PNF Buy Signal Scan question

beeron

I think I understand the basics of the P&F scan, the columns of x's and o's, etc...

But if I plug this into a scan:

and [PnF Buy Signal is true]

What, exactly, are in this? Like, what columns have x's in them? I'm not sure if I know how to ask this correctly, but I'm just wondering what the ingredients are for this particular scan that triggers a P&F Buy Signal?

If anyone knows, I'd appreciate it if you could point me in the right direction.

lmkwin

The Glossary says

https://school.stockcharts.com/doku.php?id=glossary_p

that it's a traditional PnF buy signal, so Double Top, Triple Top, etc would fit this bill. Any pattern where the column of X exceeds the prior column of X by a box and is not showing a subsequent sell signal. A sell signal is where the column of O's drops below the prior column of O's by a box.

A bullish pattern that is not considered in this group is a Low Pole pattern. It is listed in the Bullish PnF Patterns in the Predefined Scans on StockCharts, but it's not included if you ask for the buy signal criteria in a scan.

https://school.stockcharts.com/doku.php?id=chart_analysis:pnf_charts:pnf_bullish_bo

StockCharts considers the low pole as a "buy alert" pattern

https://stockcharts.com/def/servlet/SC.scan

The opposite is also true. A High Pole is considered a bearish pattern but is include in the buy signal is true of the Scan workbench.

beeron

Yeah, I read all of that already, so the fact that I still don't understand just means I'm not that bright, I guess, but thanks for your time...

lmkwin

Don't get discouraged. PnF is learning a new language. Add in learning StockCharts scan code language, it takes time to get comfortable.

the scan code says

and [PnF Buy Signal is true]

This means that at least ONE of the following are true on the PnF chart.

[Bullish Catapult is true]
[PnF Ascending Triple Top Breakout is true]
[PnF Bearish Signal Reversal is true]
[PnF Double Top Breakout is true]
[PnF Triple Top Breakout is true] (or greater)
[PnF Quadruple Top Breakout is true]
[PnF Spread Triple Top Breakout is true]
[PnF Spread Quadruple Top Breakout is true] (or greater)

All of these patterns will show a X column that exceeds the prior column of X by 1 box.

These are the most recent pattern(s) showing on the PnF chart at the period of the scan.
If you look at the PnF chart on StockCharts, it will tell you, in the header, what the current pattern is that it recognizes.

I've partially marked up a chart on AMGN showing where the Buy Signal (green) and Sell Signal (red) are.



I highlighted the current pattern that the system is showing. In this case, it isn't recognizing any current pattern as the last signal occured a couple columns ago. Right now it's in a congestion area, having retraced back into the prior breakout pattern.

On the Dorsey Wright website they give you the option to have the signals (and signal trails) colored.



In my prior response I mentioned that a Low Pole can be considered a bullish pattern, but StockCharts doesn't include these in the results if you scan for

and [PnF Buy Signal is true]and [PnF Buy Signal is true]

Bear Traps can also be consider bullish as well.

Of course all patterns need to be considered in context to what they mean in the grand scheme of things. A simple double top buy signal on a low priced stock may carry more weight than a similar pattern on a very high priced stock.

I use PnF pretty exclusively for most analysis. If you have any questions, ask. We are here on this forum to help and to learn how to use technical analysis and the StockCharts systems.

beeron

Hey, I really appreciate you taking the time to do all of that. It's a lot to digest so I'll need to pick it apart and try to absorb it...I've only been at this a little over a year, so I'm in the stage of, "Pay attention to everything and don't lose money." Part of me knows that it's dumb to try to reinvent the wheel, but most of me hates doing what everyone else is doing, so I'm trying to develop my own tradecraft that obeys reality but also suits my temperament...good luck, me, ha ha...

Thanks again..

lmkwin

Lots of information in this forum in the Trading Strategies and other. Put phrases of interest in the search box and you could find a wealth of thought provoking info. I use PnF. I am not a trader though. I only pay attention to price. Anything else is a distraction in my opinion.

Good luck you.

harryl2

Is it possible to scroll through a watch list in P&F format? I know you can do it in gallery view but would prefer to just see the p&f chart. Tx.

lmkwin

In your chartlist. Click on a chart to open it in the SharpCharts Workbench. At the bottom of the page you can click on the PnF chart. Change your settings there however you'd like. Then click Update to refresh your chart. When satisfied, click on the Apply Style To All button



This will update ALL of the charts to this style. Click on 10 per page and you should have PnF as far as the eye can see.

Another option is to use the CandleGlance view on the ChartList. There you can click the dropdown for Chart Duration. 2 of the options there are PnF charts. The % PnF is a 1% x 3 with funky axis labels, but the chart is the chart.

I prefer the 1st method.

BTW, if you get your PnF style to be one that you like and would like that Pnf chartstyle to be your Default PnF chart, when in the workbench on that chart, click on the Save As Default button




and now this PnF style chart will be your default for when you open a pnf chart. And it will be the style in your Gallery View for the PnF chart.

You can also save individual charts by using the 1st method but instead of clicking the Apply Style to All button, just click on the Save or Save As links at the Top of the chart. Then find the next chart(s) that you want to change to PnF and do the same thing, one by one.