Welcome to EV's point and figures. This blog is dedicated to the use of point and figure charts in technical analysis.
Although P&F first appeared in charts in the 1930's, it is an often overlooked techique for analysing stocks and charts. A poor relation compared to line and bar charts and their range of momentum indicators. Yet few charts provide a clearer picture of the daily battle between bulls and bears for market control.
Like most methods, it should not be used in isolation. It should form part of an analysts 'tool box' and be used with other techniques to help form an overall view.
The charts that appear on this blog and any accompanying comments are purely for information purposes only - my own personal take on where the prices may be heading. They do not constitute investment advice.
Thursday, April 29, 2010
The hourly and four hourly charts on the FTSE 100 index are much more interesting but here is the closing 25x3 P&F. It can be seen that the uptrend remains firmly in tact but the Tuesday's sell off has given rise to a double bottom sell signal, with an indicated target of 5,375. Remember, the targets are based on P&F rules and may not play out. This target will be negated if the FTSE pushes back above 5,750.