by Jeremy du Plessis
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.
Jeremy du Plessis -
one of the foremost Point and Figure experts in the world - returns with
a fully updated second edition of this definitive guide in an effort to
redress this imbalance. This second edition, with an extensive revision
to the text and introduction of brand new techniques, demystifies the
world of Point and Figure charting. It includes a detailed explanation
of the history and development of the technique from its invention to
the modern day, and covers the makeup of the chart patterns, why they
are created, and how to interpret them.
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 featured in the second
edition 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
- An in-depth
chapter on Analysing Point and Figure charts, extensively rewritten from
the first edition
- A new explanation of how Point and Figure
parameters are chosen and the implications of choosing them
- Two new
Point and Figure construction methods never seen before
- Point and
Figure's contribution to market breadth, with a look at bullish percent
and two brand new indicators
- Full discussion of Point and Figure gaps
and how they provide valuable information about the chart
- Lesser
known, more advanced techniques such as the use of moving averages,
parabolic SAR and Bollinger Bands on Point and Figure charts
- Price and
volume activity histograms and how they provide information about
support and resistance
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. Part of the Market Technicians Association (MTA) Required Reading list.
