Counting Method / June 6, 2018 / Victoria Muller
Integers are used in everyday life. A debt or a loss is often expressed with a negative integer. A gain is usually expressed with a positive integer. When the temperature is warmer than the zero point of the temperature scale, it is represented with a positive sign; when it is colder than the zero point, it is represented with a negative sign.
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.