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, March 11, 2011

FTSE 100: triple bottom sell signal

Here's a pattern that's not been seen for many a month - a triple bottom sell signal on the 25x3 closing P&F. Note the previous resistance at 5,925 (on two occasions) has now been punctured and also the previous support seen at 5,875 has been taken out. There is still some short term bullish support to get through (thin blue line) but for now I have an active target to the downside of 5,625, which is also supported by the H/L P&F chart (not shown)

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