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
  Retracements (or corrections), during a Point and Figure trend, tell us about the strength of the trend.
• Spikes
  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.
• Triangles
  For a valid Point and Figure triangle there must be at least two retracements counter to the prevailing trend.