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, July 31, 2012

FTSE 100 hourly chart

On the hourly chart, possible failed backtest of previous support line.

FTSE 100 update

On the hourly chart the FTSE 100 has now slipped out of the upward channel. 

And on the daily there is a now a backtest of the upward sloping line, where the index previously found resistance at the 61.8% fib.

Friday, July 20, 2012

FTSE 100 4 hour chart

Flirting with the 61.8% fib - short term double top perhaps?

We could now test the upward sloping support line at 5,650  - 5,655

Bigger picture

Thursday, July 12, 2012

FTSE 100 update

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 ).

Expanding the daily chart out shows that the 4,762 target would support the larger head and shoulders case, with the right shoulder completing around that level, nicely on the neckline - we'll see!

Tuesday, July 3, 2012

FTSE 100: 4 hour chart

Looking a bit stretched

Monday, July 2, 2012

VIX - a bit more to go?

If a completing H&S, should end closer to 15.