Basic Patterns
by PRASHANT SHAH -
Construction of Point & Figure charts is unique, and effective P&F analysis will be very difficult unless it is properly understood. Point & Figure charts move vertically in alternating columns of ‘X’ and ‘O’. The combination of the columns produces patterns that are objective and simple to identify. I have segregated patterns into different types ... Read more
Fresh and Continuation Signals
by PRASHANT SHAH -
Not all P&F columns are Buy-Sell columns, and not all Buy-Sell columns are Fresh signals. A bullish breakout that happened at Double Top Buy signal remains open until formation of Double Bottom Sell signal. There can be Double Top Buy signals in between, which are known as Continuation Buy signals. Fresh Buy signal is a ... Read more
Exit, SAR and Affordability
by PRASHANT SHAH -
Exit Method We discussed that it is possible to know beforehand the price at which these Buy and Sell signals will be generated. In the method discussed above, when an instrument is bought upon Double Top Buy formation, the exit pattern is Double Bottom Sell pattern. While placing the buy trade, it will be possible ... Read more
Exercise
by PRASHANT SHAH -
We discussed construction and basic P&F formations in the earlier chapters. It must be clear now that a column reversal is a two-column formation and basic Buy-Sell signals are three-column formations. If you have observed several P&F charts before reading next section, then it will benefit in understanding further. Nonetheless, correct marking of charts given ... Read more
Affordability Patterns
by PRASHANT SHAH -
Price going above previous high is a bullish swing breakout. Price falling below previous bottom is bearish swing breakout. We can trade based on these simple swing breakout patterns. For example, buy when price goes above previous swing high and exit if it falls below the previous bottom. Hence, previous bottom becomes our stop-loss. P&F ... Read more
