The aim of this book is to explain point-and-figure charting to European investors and
traders, and to show why it is the most reliable technical tool for timing entry and exit points in stocks,
indices and other securities.The book is written for all levels of
trader,
from the novice to the experienced. It starts by explaining the basics
of point-and-figure, and by showing its advantages over other types of
chart. Readers are then given step-by-step
instructions
on how to start a point-and-figure chart from simple price data, and
how to add to it day-by-day using simple rules based on end of day highs
and lows. The emphasis is on simplicity and clarity.The section on
chart interpretation introduces the basic
buy and sell
signals, and goes on to explain the more complex signals, in each case
illustrating the pattern, and the precise entry and exit points, with
colour charts from FTSE stocks and indices. It also shows how trend lines are incorporated into a chart.The latest point-and-figure
trading
techniques are covered in depth. The authors show how to: use
horizontal and vertical counts to estimate the size of price moves, use
stop-orders to protect positions, use pyramiding to maximise profitable
trends, and use swing trading in combination with p&f. They also show how to adapt your
trading style
to the amount of capital you have available and to your risk
tolerance.In the later sections of the book, the authors concentrate on
optimisation of p&f trading and the avoidance of the most common trap – ‘over-fitting’, and on analysis of the profitability of p&f trading.
They demonstrate conclusively that point and figure, correctly applied,
produces consistent and reliable profits acrossa variety of
markets.In summary, Heinrich Weber & Kermi
