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, January 12, 2011

IBEX: up 5% today

Here is the closing 100x3 P&F chart on the IBEX, following today's mega 519 (5%) rally. Seeing a triangle formation. The move out of the triangle and direction are the things to watch, provided that patten plays out (normally requires 5 columns, which would mean a 3 box reversal to the downside to reverse today's rise to play out). I had something similar with the FTSE a while back which failed, but for the IBEX i'm not envisiging a similar rally tomorrow, although if the bond auction goes well.........

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