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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 5: Projecting Price Targets

One of the greatest advantages of Point and Figure charts is ‘the count’, as it is called, which is the ability to project price targets from the chart. These counts are objective on 3-box charts and subjective on 1-box charts. They are potential targets that give the analyst some idea as to how far the price can go. It is important to stress the word ‘potential’. The targets are a rough estimate. It would be naïve to expect them to be anything else. Sometimes the price will reach the target with pinpoint accuracy; sometimes it will be some way off. However, the bonus is that not reaching a target, or indeed exceeding a target, does give the analyst additional information about the price action – this will ...

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