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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 7: Point and Figure Charts of Indicators

The Point and Figure method is really just another way of charting data, just as line and bar charts are. There is, therefore, no reason why they cannot be used for charts other than pure price charts, such as calculated lines, called indicators.

In theory, there is no limit to the indicators that can be drawn using the Point and Figure method. In practice, however, it is wise to consider what the benefits are of doing so. Point and Figure charts are very good at showing trends because a column of Xs represents an uptrend and a column of Os represents a downtrend. They are also good at showing reactions against the trend and reassertion of the trend. Their sensitivity can be altered to hide or ...

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