Академический Документы
Профессиональный Документы
Культура Документы
Unambiguous signals Objective trend definition Multiple time horizons from same data Objective price targets & risk-reward ratios Better for Relative Strength analysis Ideal for scanning of stock universes
Price is scaled on the vertical Y-axis No time scale along the horizontal X-axis
Time not part of construction or analysis
How?
8 9 11 12 12 13 15 15 16 16 15 13 12 11 14 15 16 17 19 20 21 19 18 19
Where did they come from? But realised that fractions didnt add anything. So removed fractions
8 9 11 12 12 13 15 15 16 16 15 13 12 10 10 11 11 14 15 16 17 19 20 21 19 18 19 20 20 21 23
Where did they come from? Started to notice patterns in the data
23 22 21 21 20 20 20 19 19 19 18 18 17 16 15 14 13 12 11
16 15 14 13 12 11 10 9 8
15 14 13 12 11 10
Where did they come from? Price record becomes a Figure Chart
23 22 21 21 20 20 20 19 19 19 18 18 17 16 15 14 13 12 11
16 15 14 13 12 11 10 9 8
15 14 13 12 11 10
Where did they come from? Figure chart becomes a Point Chart
20 X X X X 0 0 0 X X X X X X X 5 X X X X
15
10
X 5 X X X X 0 X X
5 X X X X 0
Where did they come from? Modern Point and Figure chart
20 X X X X X O X X O X X O X X X X X X X
15
10
X X X X X X X X X
O O O O O O
Data required
Tick plot each price original method
Too much data for longer term analysis
Unambiguous Signals
All 3-box P&F signals based on Double-top and double-bottom break
(1-box patterns are more complex)
X X X X O X X O X X O X Buy O O X O O X O O X O O O O
Sell
Unambiguous Signals
Triple-top and triple-bottom break
X X X X X O X O X X O X O X X O O X Buy O O X X O X O X O O X O X O O O O O
Sell
Unambiguous Signals
Signals are unambiguous.
BUT not every signal should be taken
Signals put you in the right frame of mind Point and Figure analysts
Look left for Support or Resistance Look left to see if it is part of a bigger pattern Look for common Point and Figure patterns
Uptrend or Downtrend?
Log or Arithmetic?
Log better: For medium and long-term analysis Where large rise and fall Where rise has been exponential
Arithmetic better: For linear price rises For charts in a price range (e.g. Bonds) Essential for intraday charts especially tick charts Essential for Forex
Unambiguous does not imply accuracy Targets and trends go together Achieved and unachieved targets tell you
Trend strength/weakness Warn of trend deterioration
Rising chart = share outperforming Falling chart = share underperforming Essential for good fund management
Buy/hold outperformers Sell underperformers
Best to use two time horizons 1% & 0.5% Add Relative Strength with same box sizes
Email: Jeremy@Updata.co.uk