Point & Figure Patterns
- Basic Point & Figure Patterns
Basic Point and Figure chart patterns: Support and resistance, trendlines, breakouts, bullish and bearish signals.
- Bull & Bear Traps
One of the most reliable Point and Figure chart patterns, Bull Traps occur when an upward breakout retreats back below the new support level.
- Cup & Handle
Identify the cup and handle pattern on Point and Figure charts. Popularized by William J O'Neill (How To Make Money In Stocks).
- False Breaks
Similar to Point and Figure bull and bear traps, false (or marginal) breaks occur at minor support levels (from a previous low) or minor resistance.
- Bull & Bear Traps - Primary Index
Upward breakouts in a primary down-trend are notoriously unreliable.
Retracements (or corrections), during a Point and Figure trend, tell us about the strength of the trend.
An upward Point and Figure spike is where a rally exceeds the previous column of Xs by at least 10 boxes.
- Trend Reversals
After a Point and Figure up-trend, marginal new highs (especially where accompanied by equal or lower lows) indicate a loss of momentum.
For a valid Point and Figure triangle there must be at least two retracements counter to the prevailing trend.
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