Can you believe that Point and Figure Charting has been around for over a 100 years? The first proponent of this was Charles Dow the first editor of The Wall Street Journal.
Point and Figure Charting is based on the simple economic theory of Demand and Supply. When there is more demand the price rises and when there is more supply the price falls. The same principles and logic apply to Capital Markets. When there are more buyers the price rises and vice versa.
Point and Figure Charting is done on a simple graph paper. There are two columns: 1) The “X” column which represents buyers and Y column represented by “O”.
Here is a link which gives you Point and Figure Charts
The numbers 1,2,3 to 9 January to September months and A,B,C represent October, November and December.
I will go into the details of this in my next write up. Till then await your feed back.
A special thanks to Hitesh for encouraging me to start this new thread. Will also share the link to a book on Point and Figures by Thomas Dorsey available on google books.