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 17, 2010

FTSE 100; 50 day mva crosses 200 day mva but....

This is a 3 year (anaemic looking!) daily chart of the FTSE 100, log scale. See in this latest move up the weighted 50 day MVA has crossed up back over the 200 day weighted mva, which itself is pointing upwards. Ordinarily a bullish sign.

But see also how a similar pattern played out in May-July 2008, the only difference being the 200 day WMVA was not pointing upwards in the quite the same way.

If the bear market is to re-asset itself, we need to see a hard down on the FTSE 100 soon.

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