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, October 27, 2011
On the daily, the FTSE 100 paid no respect to the 200 sma at 5,722.
Monday, October 24, 2011
Friday, October 21, 2011
Thursday, October 6, 2011
You can see the 'high pole' to the left of this 50x3 HL chart (4th column in with the 3 and in it - Mar, Apr). A big move up immediatley followed by a immediate 50% retrace which in this case became 100%. At present, the 6.150 target to the upside is still active and it can be seen that so far the index has not violated the 4,750 low from August. The rally we have seen in the last two days is a continnation of the recent pattern of sharp moves down, followed by quick rallies but the point to note is the lower highs and lower lows - bears are coming back in at lower levels and pushing the market down. This may not continue but it suggests the bears are in control. The move through 4,950 during the last sell off has activated 4,050.
Tuesday, October 4, 2011
Starting with the Dow (100x3) the 9,600 target is active and there is a target of 8,800 which is not active - need to see the index move below 10,500 to activate it. To the upside, the target of 12,700 is not active. We would need to see a three box reversal and a move up through the previous high of 11,300.
Monday, October 3, 2011
But once again it finds itself guilty by association, dragged down with the sector and clearly susceptible to a slow down in the Far East. Having reached a high of 1975p in late 2010, the shares have moved progressively lower and today achieved that 1225p price target from the high (a decline of 38%). The recent price action suggests the pace of decline has slowed a tad (ie falls of around 125p before the bulls come back in and reverse the column) but for now the bears have control. But that's not all............
On the 25x3 HL chart, we do actually have a new lower low (denoted by the red 0). There is an active target to the downside of 1575p and a new targert of 1050p, activated by this move below the previous column of 0's.