How To Use The Three-Point Reversal Method of Point & Figure Stock Market Trading

Three-Point Reversal Method of Point & Figure Stock Market Trading by A. W. Cohen is a foundational guide to one of the most reliable and enduring charting techniques in technical analysis. Long before computers automated market pattern recognition, Cohen systematized Point & Figure charting into a precise, rules-based method — emphasizing clarity, simplicity, and discipline.

This book explains how price movements can be reduced to essential structure — columns of X’s and O’s — to reveal the pure supply-and-demand balance of the market. Cohen’s three-point reversal technique eliminates market noise and highlights genuine breakouts, trend reversals, and continuation signals. It’s a timeless tool that helps traders identify accumulation and distribution zones, project price targets, and maintain objectivity through volatile markets.

With step-by-step explanations, real chart examples, and a focus on practical execution, this book remains a must-read for traders who want to move beyond subjective chart reading and adopt a disciplined analytical framework grounded in price behavior itself.

✅ What You’ll Learn:

• The principles and construction of Point & Figure charts.
• How the three-point reversal method filters false signals.
• Techniques for identifying breakouts, reversals, and support/resistance levels.
• How to set and manage stop-loss levels using Point & Figure logic.
• Methods for projecting price objectives and understanding market momentum.
• How to integrate Point & Figure signals with other forms of market analysis.

💡 Key Benefits:

• Gain a clear, rules-based approach to chart reading.
• Learn a proven system used by professional traders for decades.
• Improve trade timing and accuracy by focusing on structure, not noise.
• Combine classical analysis with modern trading strategies.
• Build lasting confidence through mechanical, objective decision-making.

👤 Who This Book Is For:

Ideal for technical analysts, swing and position traders, and anyone seeking precision in chart interpretation. Beginners will find a clear introduction to the logic of price movement, while experienced traders will rediscover a timeless framework that sharpens analysis and strengthens conviction.

📚 Table of Contents:

• The Point & Figure Chart and Construction
• Chart Patterns
• Trend Lines
• Price Objectives
• Relative Strength
• Industry Groups
• The Dow-Jones Industrial Average
• Trading Tactics
• Convertible Bonds
• Over-The-Counters
• Technical Indicators
• Puts and Calls
• Commoditie
• Adjusting a Chart for a Stock Split
• The 5-Point Reversal Chart

How To Use The Three-Point Reversal Method of Point & Figure Stock Market Trading By A. W. Cohen