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.

Friday, September 24, 2010

Dow Jones: on the up!

I would not normally use 100x3 charts, as the 100 point box size strips out a lot of noise. They are good for big picture but clearly loads can happen in between.

This is the current picture on the Dow. All looks very positive. We need to see a break above that 11,200 line to give those upside targets a bit more credibility. Bears can take heart that that previous high has not been taken out.

What a difference 2 months makes. Back in July, this same 100x3 chart showed that on balance the risks were to the downside. The 50x3 and 25x3 charts are better for providing shorter term indications.

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