Chapter 16. Point-and-Figure Chart Patterns

Chapter Objectives

After studying this chapter, you should be familiar with

• The difference between one-point reversal and three-point reversal point-and-figure charts

• How to construct trend lines, recognize areas of consolidation, and determine the count using one-point reversal point-and-figure charts

• How to construct trend lines, recognize basic patterns, and determine the count using three-point reversal point-and-figure charts

In the previous chapter, we studied patterns that can occur when price information is displayed on a bar chart. We continue our study of patterns, but now we focus on formations that are related to point-and-figure charts. As we do this, we will notice that many ...

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