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.

Wednesday, May 26, 2010

S&P 500 10x3 close

Here we have the SPX 10x 3 p&f at the close yesterday. The blue line is the long term bullish support line, whcih remains in tact/ But note how the last line of o's has tested the more recent support line, if not just about taken it out. A Double bottom sell signal was triggered when the 1,100 box was filled, activating a downward price objective of 940 for me. No time scale for this and it will be negated if we see a move back above 1,210.

26th May 2010: FTSE 100

This is a 50x3 chart of the FTSE based on closing prices (not high/low). The price objectives from April for the FTSE 100 were met. See that previous support at the 5150 level has now given way with the most recent market sell off. We have 13 0's down from the top at 5,800 and a confirmed double bottom sell signal now the index closed below 5,150, filling the 5,100 box. Activated price objective 3,850.