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.

Tuesday, November 30, 2010

FTSE 100 - double bottom sell signal

Sometimes simple charts are the best. Following on from the previous entry, this 25x3 closing P&F on the FTSE 100 has now progressed. We had a three box reversal to the upside (denoted by the 3 x's) but that has now reversed and the bears have pushed the market down below the previous column of 0's creating a nice double bottom sell signal and an activated downside target of 5,050.

Still plenty of scope for this to reverse and lapse but reading the chart today, this is what it is suggesting.

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