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, December 18, 2012
Not the clearest of charts it must be said (100x3 h/l). The FTSE mid 250 index posted a new all time high today, taking out the intra day 12,282.2 on 22nd May 2007 - hooray! Currently 12,290 as I write.
The 100x3 chart shows that the Index has on two previous occasions reached this heady level (ie filled the 12,200 box - in May 2007 and more recently July 2011. Anyone who 'bought the index' in July last year may be looking for an exit, so clearly an area of resistance bulls will need to overcome.
No arguing though its an impressive recovery from the 2009 lows.
Friday, December 14, 2012
Wednesday, November 7, 2012
The weekly below also showing strong resistance at current levels. The bulls need to push through this decisively to resume the bullish run but having failed to do so on all previous attempts, i'm wondering if we have seen the top for now.
Wednesday, August 15, 2012
Friday, August 10, 2012
Thursday, August 9, 2012
For me, the VIX will need to get back down to between 14 and 15 then form a base, which could co-incide with SPX testing its previous high of 1,422.
One thing that can be said about the VIX (just by observing the chart above) is that gaps do get filled and there us a nice gap (circled) between 16.5 and 18. The only question is whether it gets filled prior to going down to the 14-15 range or after. I'd suggest the latter, such seems to be the renewed mood of 'optimism' running through the market!
And here's the VIX with SPX overlay. I can't count waves to save my life but a traditional double top at 1,422 certainly looks plausible!
Tuesday, July 31, 2012
Friday, July 20, 2012
Thursday, July 12, 2012
IF the FTSE has started its wave 3 down, a plausible target is 4,762, which is 1.618x wave 1 down from the top. I say IF because this wave 2 up could yet extend slightly further, up to the 78% retrace level. A decisive move below the 200 day moving average would help the bearish case (but at this moment it cannot be called as the 4 hour chart is hovering around its support line at c5,600 - a sharp move below that would also help the bear's case ).
Monday, July 2, 2012
Wednesday, June 20, 2012
Tuesday, June 19, 2012
Wednesday, February 1, 2012
This from 6th October: 'As I calculated in a previous post using the 50x3 PF, a 78.6% retrace from the top (6050) to bottom (4800) comes out at 5,782, which is reasonably close). This assumes of course that we get a 'perfect' head and shoulder pattern'.
I must admit I didn't give this much of a chance because back in October the PF's of the FTSE were pointing to lower lows.
Thursday, January 26, 2012
BHP Billiton share price has filled the gap left at 2160p and 2200p. If this a head and shoulders, it should not go much higher than 2250p (note the lower low at the bottom of the 'head'). RSI currently 71 and Slo Sto 91.
The Weekly chart provides a bit more clairty as to the pattern. Shares currently 2207p, so we will soon find out whether this would be head and shoulders pattern materialises.