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The Definitive Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method by Jeremy du Plessis

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Chapter 4: Understanding and Using Trend Lines

Trend lines play an important, if not essential, part in Point and Figure analysis. They bring Point and Figure charts alive. There is, however, a subtle difference between trend lines drawn on line or bar charts and those drawn on Point and Figure charts. With line and bar charts, trend lines show the line at which there is constant rate of change per unit of time. This is because line and bar charts show price versus time. With Point and Figure charts, however, there is no time. Instead, the x-axis shows the number of columns, which is the number of times the price has reversed. So, a trend line on a Point and Figure chart shows constant price change per reversal or per change in demand and supply. ...

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