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, September 27, 2011

FTSE 100 further HS update

I should have added this weekly candle chart to the update I did yesterday. I can't rule out the possibility that the right shoulder will complete up where the (larger) left shoulder topped. If I work it out on the P&F chart, a 78.6% retrace from top (6050) to bottom (4800) comes out at 5,782, which is reasonably close.



The top of the left shoulder shows up much better on the candle chart compared to the P&F, which shows a high pole up then a very swift reversal.


The alternative would be some sort of bear flag and a move lower.



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