Point & Figure Charting A forerunner to Technical Analysis

Document Sample
Point & Figure Charting A forerunner to Technical Analysis Powered By Docstoc
					        Point & Figure Charting
         A forerunner to Technical Analysis

          The Roots of Point &Figure:

1.   1881 – 1904      The Book Method
2.   1904 – 1920s     The Trend Register Method
3.   1920s –1930s     Figure Charts
4.   1930s – Today    Point & Figure Charts
29
28 28
27
 Point & Figure Charting
A forerunner to Technical Analysis
Point & Figure Charting
   An Ideal Charting Sheet
Point & Figure Charting
Point & Figure Charting
Point & Figure Charting
Point & Figure Charting
A forerunner to Technical Analysis
Point & Figure Charting
Point & Figure Charting
Point & Figure Charting
 The Basic Point & Figure Chart
      Point & Figure Charting
       A forerunner to Technical Analysis
  Price ($)                   Box Size

  0–5                   ¼ Point per Box
  5 – 20                ½ Point per Box
 20 – 100               1 Point per Box
100 – 200               2 Points per Box
200 +                   4 Points per Box
          Point & Figure Charting
                       Buy & Sell Signals
This triple top upside break          This sell signal
Is easily seen                        Is easily seen


45
                X                45         O    X
        X   X   X                           O    X O X
        X O X O X                           O    X O X O
        X O X O X                           O    X O X O
        X O   O                             O            O   O
40
        X                        40                          O
     Point & Figure Charting
       A Horizontal Count

• Count across the base which a
  stock has built.

• Multiply by 3.

• Multiply again by the value per
  box.
     Point & Figure Charting
          The Horizontal Count
• Similar to the vertical count.
• Except it is horizontal - across
  the formation.
• Look at it like cannon fire:
• It measures the “power” behind
  the shot
• The vertical measure how high
  the shot will travel
     Point & Figure Charting
50

                        X
                        X
                        X   The
45                      X   formation’s
                            Widest
        X       X       X   Point is 5
        X   O   X   O   X   Boxes
        X   O   X   O   X
        X   O   X   O   X
40      X   O       O
          Point & Figure Charting
           The Bearish Support Line
                                Bullish Resistance Line

                                                      Bearish
                                                      Resistance
                                                      Line
Wall of
 Os
                                                          Violation
                                                          of Bullish
                                                          Support
                                                          Line

                        Bullish Support Line
                                                          Bearish
                                                          Support
                                                          Line
     Point & Figure Charting
 The Vertical Count for the Short Sale

           X       X       X
30     O   X   O   X   O   X   O
       O   X   O   X   O   X   O
       O   X   O   X   O       O
       O       O               O
                               O
25                             O
                               O

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:10/4/2012
language:English
pages:18