Hi Zarp, I know that you use point and figure charts quite extensively and I am rather intrigued by them, have done quite a bit of reading too.
Do you plot your own data or do you use a program to do it, if so what program is it and can I use it for the top 40? If you plot your own, what amount of movement do you use for your X's and O's (i.e. what does each X and O represent on your chart?) Regards
Nolan : Google search "Point Figure University"...all there for free. And the Traditional Box Sizes are : 1.01 to 5.00 = 0.25 (eg DRD at the moment)*** 5.01 to 20 = 0.50 *** 20.01 to 100 = 1 *** 100.01 to 200 = 2 *** 200.01 to 500 = 4 *** 500.01 to 1000 = 5 *** 1000.01 to 2500 = 10 *** 2500.01 to 17000 = 50 *** 17000.01 to 25000 = 100 *** (eg TOP40) 25000.01 and up = 500 *** I plot my own and maintain,after the Close each day.Takes an easy-going 30 minutes of one's time.Hint: Plot the TOP40 from the June2006 Low as an experiment.
Hi zarp, I just finished going through the PnF university course, Just so I can get some clarity, for the TOP 40 (the only chart I will be plotting for now) we will only make the EOD on the chart, correct? And this will only be for movements in excess of 100 points until it gets to 25000 and then each box will be 500 points am I correct? And only when it moves down by at least 300 points then we mark the O's? What do we do it the movement is on 75 points, will we leave it out and wait to see what will happen the next day? Regards
Nolan:excellent.You are now on enroute to greater things.( I wish I knew this stuff in 2006.It eliminates a lot of risk when planning Plays.It will teach you a.PRICE b. Support and Resistance.NOTHING ELSE MATTERS to Point and Figure.### Onward...We plot the Highs and Lows( NOT end-of-days) on the Weekly Chart since 2005 Low with a first row of Xs and use the Box-size rule.Simple as that.You now have a good perspective..###Then go to the TOP40 Daily Chart and plot another P&F chart.Using Jun2006 Low as the Start.The DAILY one is more reactive and naturally updated WHEN the Reversal is 3 Box sizes or more.. .(doesn't move for a while,sometimes, on some Charts.Just a slave to Price.) ###### PS : If you have a row of Xs active, you FIRST look to see if the Xs can gain.ONLY if the Xs cannot advance do you look for a 3 x Os or more reversal...and Vice-versa if a Row of Os is active.VERY NB.
Nolan :...when Constructed, the Charts now give a Pic of Demand and Supply.There are a few Traditional BUY and SELL signals to learn.And finally,not as important,working out potential Price Objectives..Game over...## You'll see how they ANTICIPATE.You now have the KEY to Trade less and trade Smarter because the Price will show you where the BUY and SELL signals kick in..### just place Trades overnight at the Price indicated....Voila !(You get it or you don't.)...## +++Position-sizing for Trades = Money-management priority..###..Put these 2 together and it's a Good, Professional Start...best of.
Great, thanks Zarp. I was wondering about the highs and lows but now have clarity on that. Really appreciate the help, will take a bit of time to construct it but once finished do you mind if I email it to you so tat you can have look at it? Regards
Nolan: All the best....However, I'm afraid the E-mail idea will have to stay on hold,until further notice.Go to stock charts.com and confirm if you're doing it right.The P&F University site should Close the deal..###..Who knows, if the P&F-thing sees greater interest, we can talk a specific Blog with Charts/Ideas.....but,uh,early days on that.
Zarp, there is definitely interest. Nolan and I have been talking about P&F for a while now - in fact, you got me interested and I mentioned it to him. Have been doing my own research on this and have got the basics down. I have also followed this thread with interest and now going through PnF University, so a blog or some kind of forum would be great.