Point and Figure charts are a separate branch of technical analysis that stock traders spend countless hours learning in the hopes of making big money. In fact, there is a whole marketing sector devoted to trying to convince you that Point and Figure charts are superior to all other types of charting.
But sometimes, things that fall into obscurity are better left there.
Wait, seriously? That's a real chart? This looks like the disturbing offspring of Mrs. Tic-Tac-Toe and Mr. Battleship.
Looks aside, X = up and O = down. That's it.
Come on! No volume. No Stochastic. No RSI. No MACD. There isn't even days on this chart, only years designated by a little number down at the bottom.
You remain in the same column of X’s or O’s as long as prices continue to rise or fall. As long as the price rises by at least one box, you do not care about what it did on the downside. In other words, if the high price for the day was $41 but the low price was $30, you would still only plot the one-box increase. If, however, the next day the price did not rise by at least one box, you must then decide whether the price reversed down by a box. You are only interested in one direction per period.
How incredibly stupid is that not to care about what a stock does on the downside intra-day? You look at price direction and volume to determine the amount of sellers versus buyers and whether the stock is being accumulated or distributed.
You also look at the shadow (that little line above or below the body) of the candlestick that reveals intra-day buying or selling at various price levels. Lots of lower shadows on candlesticks after a downtrend often signal a trend reversal as buyers step in to move the stock higher off the day's low (vice-versa for uptrend reversals).
Point and Figure charts are simply a modified version of support and resistance trend lines I can see on any line, candlestick, or high and low chart.
The more I think about it, I guess I should encourage the use of Point and Figure charts.
Hey... if you want to perform a backward pike off your roof onto the sidewalk below, and end up joining the guys below to trade against me, who am I to get in your way?
Point and Figure charts are a separate branch of technical analysis that stock traders spend countless hours learning in the hopes of making big money. In fact, there is a whole marketing sector devoted to trying to convince you that Point and Figure charts are superior to all other types of charting.
But sometimes, things that fall into obscurity are better left there.
Wait, seriously? That's a real chart? This looks like the disturbing offspring of Mrs. Tic-Tac-Toe and Mr. Battleship.
Looks aside, X = up and O = down. That's it.
Come on! No volume. No Stochastic. No RSI. No MACD. There isn't even days on this chart, only years designated by a little number down at the bottom.
You remain in the same column of X’s or O’s as long as prices continue to rise or fall. As long as the price rises by at least one box, you do not care about what it did on the downside. In other words, if the high price for the day was $41 but the low price was $30, you would still only plot the one-box increase. If, however, the next day the price did not rise by at least one box, you must then decide whether the price reversed down by a box. You are only interested in one direction per period.
How incredibly stupid is that not to care about what a stock does on the downside intra-day? You look at price direction and volume to determine the amount of sellers versus buyers and whether the stock is being accumulated or distributed.
You also look at the shadow (that little line above or below the body) of the candlestick that reveals intra-day buying or selling at various price levels. Lots of lower shadows on candlesticks after a downtrend often signal a trend reversal as buyers step in to move the stock higher off the day's low (vice-versa for uptrend reversals).
Point and Figure charts are simply a modified version of support and resistance trend lines I can see on any line, candlestick, or high and low chart.
The more I think about it, I guess I should encourage the use of Point and Figure charts.
Hey... if you want to perform a backward pike off your roof onto the sidewalk below, and end up joining the guys below to trade against me, who am I to get in your way?
Point and Figure charts are a separate branch of technical analysis that stock traders spend countless hours learning in the hopes of making big money. In fact, there is a whole marketing sector devoted to trying to convince you that Point and Figure charts are superior to all other types of charting.
But sometimes, things that fall into obscurity are better left there.
Wait, seriously? That's a real chart? This looks like the disturbing offspring of Mrs. Tic-Tac-Toe and Mr. Battleship.
Looks aside, X = up and O = down. That's it.
Come on! No volume. No Stochastic. No RSI. No MACD. There isn't even days on this chart, only years designated by a little number down at the bottom.
You remain in the same column of X’s or O’s as long as prices continue to rise or fall. As long as the price rises by at least one box, you do not care about what it did on the downside. In other words, if the high price for the day was $41 but the low price was $30, you would still only plot the one-box increase. If, however, the next day the price did not rise by at least one box, you must then decide whether the price reversed down by a box. You are only interested in one direction per period.
How incredibly stupid is that not to care about what a stock does on the downside intra-day? You look at price direction and volume to determine the amount of sellers versus buyers and whether the stock is being accumulated or distributed.
You also look at the shadow (that little line above or below the body) of the candlestick that reveals intra-day buying or selling at various price levels. Lots of lower shadows on candlesticks after a downtrend often signal a trend reversal as buyers step in to move the stock higher off the day's low (vice-versa for uptrend reversals).
Point and Figure charts are simply a modified version of support and resistance trend lines I can see on any line, candlestick, or high and low chart.
The more I think about it, I guess I should encourage the use of Point and Figure charts.
Hey... if you want to perform a backward pike off your roof onto the sidewalk below, and end up joining the guys below to trade against me, who am I to get in your way?
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