The Complete Guide to Point-And-Figure Charting: The New Science of an Old Art
The aim of The Complete Guide to Point-And-Figure Charting is to explain point-and-figure charting to European investors and traders, and to show why it is the most reliable technical tool for timing entry and exit points in stocks, indices and other securities. The book is written for all levels of trader, from the novice to the experienced. It starts by explaining the basics of point-and-figure, and by showing its advantages over other types of chart. Readers are then given step-by-step instructions on how to start a point-and-figure chart from simple price data, and how to add to it day-by-day using simple rules based on end of day highs and lows. The emphasis is on simplicity and clarity.
Introduction:
Point-and-figure is the best of all technical analysis methods. That’s our firm conviction. The aim of this book is to explain point-and-figure to European investors and traders, and we have therefore used European securities in all the examples given. But because p&f is universal, exactly the same concepts and techniques apply equally well to US securities. Prior to this European-focused work, the authors have written books applying p&f trading techniques to commodities and US equities.
This book covers every aspect of point-and-figure from the basic concepts to advanced technical information, because the book is meant for the novice as well as the experienced trader. We have included all the relevant information, from drawing your own charts manually to the computerisation of p&f, so the book can also serve the committed independent trader who controls his own computer environment. The purpose of the book is thus to cover all material aspects of point-and-figure charting. Whether you are a novice or an experienced trader, you should find answers to all p&f-related questions. We explain the concepts thoroughly, though in a way that is easy to understand.
In this book, we use simple charts for illustrative purposes, but also real charts of the kind we rely on in our daily analysis and trading. We have mainly chosen charts of stocks from the FTSE 100, EuroSTOXX 50 and Techmark index. We also use some other interesting examples, such as the impact of the 1987 crash on the S&P 500 index or the decline of the Nikkei 225. The book is structured in such a way that it can be used by readers of all levels of trading and investing knowledge from the novice to the experienced trader.
Contents:
- Drawing point-and-figure charts
- Interpreting the charts
- Trading applications
- New optimisation methods
- Profitability analysis – does p&f charting really work?
- Technical notes