Counting Method / June 6, 2018 / Ximena Lucas
Counting Can Be Abstract: This may raise an eyebrow but have you ever asked a child to count the number of times you've thought about getting a task done? Some things that can be counted aren't tangible. It's like counting dreams, thoughts or ideas--they can be counted but it's a mental and not tangible process.
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.com subscription required) to begin generating useful intraday PnF charts in your chosen trading instruments. Under ‘Chart Attributes’ select the period (30 minutes for example). Under ‘Chart Scaling’ select the method; ‘Dynamic (ATR)’. Now you are ready to create intraday PnF charts. The Dynamic (ATR) will use ‘Average True Range’ to calculate the vertical scale that is best for the time frame selected.