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, September 16, 2011

FTSE battle lines

Here are the current lines in the sand. The FTSE reached 5,399 intra day this morning but the bulls were unable to push it through 5,400. Conversely, we know the bears are coming back in at this level, as it can clearly be seen that we have already had two reversals and sell off's down to 5,100. But the bears have not been able to get through that level.

So thats the range - 5,100 - 5,400. For this recent pattern to continue, the market should sell off from here.

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