The Definitive Guide to Point and Figure

Point and Figure charts are one of the great secrets of the Technical Analysis world. This book demystifies the world of Point and Figure charting, with an explanation of the history and development of the technique from its invention to the modern day. It covers the makeup of the chart patterns, why they are created, and their interpretation.
Point and Figure charts are one of the great secrets of the Technical Analysis world. Highly sophisticated and with a thoroughbred pedigree, they can, however, be overlooked by traders today. This should change with the long-awaited publication of this book. Jeremy du Plessis – one of the foremost Point and Figure experts in the world – has written what can truly be described as the definitive guide to the topic. For the first time this book thoroughly demystifies the world of Point and Figure charting, with a detailed explanation of the history and development of the technique from its invention to the modern day. This book covers the makeup of the chart patterns, why they are created, and their interpretation. Throughout, readers are encouraged to understand Point and Figure charts from first principles, rather than just remember the names of a series of patterns. It is the first major work for 50 years to discuss in depth the original 1-box reversal method of Point and Figure charting and contrast it with the more popular 3-box reversal method.
Further, the explanation of how to use Point and Figure charts to project targets and calculate risk-reward ratios is the most comprehensive ever seen. Also covered in detail are: a step-by-step analysis of the FTSE 100 Index using the 3-box method, as well as the NASDAQ Composite Index using the 1-box method; a detailed discussion of optimising techniques; Point and Figure’s contribution to market breadth with bullish percent; and, lesser known, more advanced techniques such as the use of moving averages, parabolic SAR and Bollinger Bands on Point and Figure charts. All this is illustrated with numerous colour charts and observations from years of trading experience. According to du Plessis, Point and Figure charts are the ‘voice of the market’. This book helps you listen to, and understand, that voice.