kittydashwood
29-08-2006, 08:56 AM
WOW!
Anybody out there use P&F charts for the ASX?
From http://stockcharts.com/help/doku.php?id=support:understanding_pnf_charts
Point & Figure charts consist of columns of X's and O's that represent filtered price movements over time. Their distinctive look may be alien at first to people who are more familiar with traditional price bar charts but once people learn the basics of P&F charts they usually become hooked.
There are several advantages to using P&F charts instead of the more traditional bar or candlestick charts. P&F charts automatically
*
Eliminate the insignificant price movements that often make bar charts appear 'noisy,'
*
Remove the often misleading effects of time from the analysis process,
*
Make recognizing support/resistance levels much easier,
*
Make trend line recognition a 'no-brainer',
*
Help you stay focused on the important long-term price developments,
After briefly discussing the history of P&F charting, we'll talk about how to construct a P&F chart by hand. Then we'll discuss how to interpret the most common P&F chart formations.
History
Point & Figure chart analysis has been popular for a very long time. Part of its original appeal was that it was very simple for someone to maintain a large collection of P&F charts back in the days before computers. In less than an hour, using just a pencil, a newspaper and some graph paper, P&F chartists were able to update and analyze 50 or more charts every day. When computers arrived, they made it much easier to create bar charts and P&F charts started to fade in popularity. Recently however, as investors look for better ways to select stocks, Point & Figure charting has been 'rediscovered' and is once again growing in popularity.
This classic paper and pencil-based method was largely put aside as technology made charting easier, and charts became flashier. Now StockCharts.com has reintroduced the Point & Figure chart, adding a dynamic interface that gives you control of the variables.
[:p][:p][:p]
Anybody out there use P&F charts for the ASX?
From http://stockcharts.com/help/doku.php?id=support:understanding_pnf_charts
Point & Figure charts consist of columns of X's and O's that represent filtered price movements over time. Their distinctive look may be alien at first to people who are more familiar with traditional price bar charts but once people learn the basics of P&F charts they usually become hooked.
There are several advantages to using P&F charts instead of the more traditional bar or candlestick charts. P&F charts automatically
*
Eliminate the insignificant price movements that often make bar charts appear 'noisy,'
*
Remove the often misleading effects of time from the analysis process,
*
Make recognizing support/resistance levels much easier,
*
Make trend line recognition a 'no-brainer',
*
Help you stay focused on the important long-term price developments,
After briefly discussing the history of P&F charting, we'll talk about how to construct a P&F chart by hand. Then we'll discuss how to interpret the most common P&F chart formations.
History
Point & Figure chart analysis has been popular for a very long time. Part of its original appeal was that it was very simple for someone to maintain a large collection of P&F charts back in the days before computers. In less than an hour, using just a pencil, a newspaper and some graph paper, P&F chartists were able to update and analyze 50 or more charts every day. When computers arrived, they made it much easier to create bar charts and P&F charts started to fade in popularity. Recently however, as investors look for better ways to select stocks, Point & Figure charting has been 'rediscovered' and is once again growing in popularity.
This classic paper and pencil-based method was largely put aside as technology made charting easier, and charts became flashier. Now StockCharts.com has reintroduced the Point & Figure chart, adding a dynamic interface that gives you control of the variables.
[:p][:p][:p]