Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices, 4th Edition

CHAPTER 2

Point and Figure Fundamentals

Here we are on the fourth edition of this book; it could be the 400th edition and this chapter would remain the same. It has not changed for over 150 years. Many investors are familiar with charts of some kind or other, whether from school or reading newspapers or magazines. Point and Figure charts were developed over 100 years ago and have stood the test of time. We've even added a new dimension to the history of their effectiveness in negotiating all markets. That new dimension is the Internet, and now the advent of iPads and iPhones changes the touch and feel we were used to on computers. The Internet has allowed us to deliver our charting system to anyone in the world who has access to the Internet. The major leaps in computer technology have allowed us to create some amazing indicators that only 10 years ago were not possible. Until recently, we updated millions of charts overnight. Today, we can do the same charts in 10 minutes using cloud computing. We have been able to create the most interesting institutional products because of this speed. Although we have technology that allows us to operate at the speed of light, we still do the same things we did 30 years ago, by hand. In a way, everything has changed; then again, nothing has changed. When I say Point and Figure charting has withstood the test of time, I mean right up through today in the year 2013. Each year, I look back and find that my confidence in what we do only increases. ...