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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 12: Dividing your Stocks into Bullish and Bearish

You have seen that 3-box reversal Point and Figure charts give objective signals and are either bullish, where the last signal was a double-top buy, or bearish, where the last signal was a double-bottom sell. There is no neutral position. This is powerful, because it allows you to divide your universe of stocks very quickly into those that are bullish and those that are bearish. Of course the power of the computer allows this to be done without actually looking at a chart, if you think carefully about what you want from it.

Firstly, as stated, your charts all have to be 3-box reversal. Your charts need to be log scale, so the box size is a percentage. This assigns the same sensitivity ...

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