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.
Thursday, March 31, 2011
Wednesday, March 30, 2011
Friday, March 25, 2011
Thursday, March 24, 2011
Tuesday, March 15, 2011
Sometimes when you get long tails down like this you can get a market bounce. The tactic would be to wait for a 3 box reversal to the upside, then go long but with a stop loss just below the current level. But that would be a high risk trade in Japan at present and its certainly not my recommendation. Until the nuclear reactors are brought under control, the uncertainty will undermine the index, in much the same way as it did for BP's share price last year -it only stabalised when they capped the Macondo well.
Friday, March 11, 2011
The 5x3 H/L chart shows previous support at 1,305 held twice but has now fallen to the bears. Target to the downside is 1,255 and is active.