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PnF charts

isabelds
isabelds ✭
in Other Charting Tools
If the $SPX PnF chart shows a bullish Price objective, but the SPY PnF chart has a bearish price objective, which is more reliable? TIA

Best Answers

  • Kevo
    Kevo ✭
    Answer ✓
    The default PnF charts for each show different ranges. Try adjust settings for them to both have the same chart range, or try changing reversal box count from 3 to 1.

    Note that the less range $SPX PnF chart shows an active bearish trendline even though it has a bullish price objective.

    Note that $SPX is still in a long correction.

    $SPX is more reliable because SPY had selling pressure/tracking error on 24AUG. PnF charts use high/low and the SPY low was off more. See this post for more details:

    http://scan.stockcharts.com/discussion/590/s-p-500-anomaly-on-monday
  • markd
    markd mod
    Answer ✓
    Sorry, not knowledgeable enough about P&F theory to answer. But if you do a scale factor of ten on SPY, and a scale factor of 1 on $SPX, both have a bearish price objective.

Answers

  • Kevo
    Kevo ✭
    I'm not sure why the $SPX PnF chart is still showing a bullish price objective even after the breakdown? Hi @gord @markd
  • isabelds
    isabelds ✭
    Thank you and as always very helpful responses. I will look at the charts again with the info provided.

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