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.

Monday, July 25, 2011

Spanish 10 yr bond yield

Fell last week post EU Greece bailout, back at 6% today.

Thursday, July 21, 2011

Tuesday, July 19, 2011

VIX: which way next?

An interesting cross roads here for Vix. That target of 29 is active and the first target off the bottom of 20 given by the 3 x's (next to the number '7') was met. A move above 22 would give a triple top buy signal and make this target more compelling.

But see also, we now have resitance at 21.5 and an unactive target of 17 which will activate if the Vix falls below 19.5.

So the question is which will break first -the support at 20 or the resistance at 21.5? It's such a tight range, we will see very soon.

Friday, July 15, 2011

TNA & RUT: active targets to downside

The 83 support level on TNA did not hold yesterday, the move below it gave a double bottom sell signal and has activated that 65 target price.....

.. And we also have a double bottom sell signal on the Russell 2000 (5x3 HL) target 770. Lets see if these hold.

Thursday, July 14, 2011

TNA update

That target of 94, given by the column of 9 X's from the recent low got close to being hit. It is still active.

From the most recent top at 92, we then got a 3 box reversal and a colunm of 9 0's which has since reversed, giving a target to the downside of 65. But this has not been activated -for it to activate, we need to see TNA fall below 83, that is, filling the 82 box.

So 83 is the level to keep an eye on.

There is still bullish support on this chart as denoted by the blue diagonal line. The 1.5x3 chart gives a target to the upside of 94.5, so if 83 is not taken out, its possible TNA will challenge that May high. But the way markets are flapping around at present, it needs close monitoring. We'll soon see.

Monday, July 11, 2011

FTSE 100 update

The FTSE has been rebuffed at that upper resistance line. The question now is will the moving averages provide some support and if not, will the index hold that lower line, where it has found support on 3 previous occasions. The 'symmetary' of the chart is continuing!

Thursday, July 7, 2011

FTSE candle

FTSE - short term resistance on 15 min PF

It may not hold for long but clear resistance at current levels on this 5x3 15 min chart.

Monday, July 4, 2011

FTSE 100 - where next??

Too early to tell i'm afraid. Note the 'symmetary'.

The FTSE 100 posted its best weekly gain in a year last week, up 5.1%. Stripping out lots of noise, it can be seen on this 50x3 high/low chart that the Index has now got back in to an area where it has faced significant resistance so far this year.

The pattern has quite a nice 'symmetary' to it but for that to continue, we need to see the index reverse lower, and quickly. Any move above the levels of previous resistance and through 6,150 would have to be seen as a win to the bulls and we'd have to look at potential targets to the upside.

Even a hold at todays level would re-establish the blue bullish support line (as at 6,000, that top 'X' has pushed above the red bearish resistance line.

Friday, July 1, 2011


On this 10x3 H/L chart, there appears to be a triangle forming but it has not completed this pattern because to qualify as a triangle the pattern must have 5 columns (currently 4). A break below 1,480 and a move through 1,470 would activate that downside target of 1,320, given by the first column of eight 0's from the recent high.