- ホーム
- > 洋書
- > 英文書
- > Business / Economics
Full Description
Point and Figure charts are one of the great secrets of the Technical Analysis world. Highly sophisticated and with a thoroughbred pedigree, they can, however, be overlooked by traders today. Jeremy du Plessis - one of the foremost Point and Figure experts in the world - returns with a fully updated second edition of this definitive guide in an effort to redress this imbalance. This second edition, with an extensive revision to the text and introduction of brand new techniques, demystifies the world of Point and Figure charting. It includes a detailed explanation of the history and development of the technique from its invention to the modern day, and covers the makeup of the chart patterns, why they are created, and how to interpret them. Throughout, readers are encouraged to understand Point and Figure charts from first principles, rather than just remember the names of a series of patterns. It is the first major work for 50 years to discuss in depth the original 1-box reversal method of Point and Figure charting and contrast it with the more popular 3-box reversal method.Further, the explanation of how to use Point and Figure charts to project targets and calculate risk-reward ratios is the most comprehensive ever seen.Also featured in the second edition are: a step-by-step analysis of the FTSE 100 Index using the 3-box method, as well as the NASDAQ Composite Index, using the 1-box method; a detailed discussion of optimising techniques; an in-depth chapter on Analysing Point and Figure charts, extensively rewritten from the first edition; a new explanation of how Point and Figure parameters are chosen and the implications of choosing them; two new Point and Figure construction methods never seen before. Point and Figure's contribution to market breadth, with a look at bullish percent and two brand new indicators; full discussion of Point and Figure gaps and how they provide valuable information about the chart; lesser known, more advanced techniques such as the use of moving averages, parabolic SAR and Bollinger Bands on Point and Figure charts; and price and volume activity histograms and how they provide information about support and resistance.All this is illustrated with numerous colour charts and observations from years of trading experience. According to du Plessis, Point and Figure charts are the 'voice of the market'. This book helps you listen to, and understand, that voice.Part of the Market Technicians Association (MTA) required reading list.
Table of Contents
Praise for The Definitive Guide to Point and xv
Figure Charting
About the Author xvii
Preface to the Second Edition xix
Preface to the First Edition xxi
Introduction xxv
Introduction to Technical Analysis xxxi
1 Introduction to Point and Figure Charts 1 (22)
History and development 4 (12)
Where did Point and Figure charts get 16 (2)
their name?
The use of Point and Figure charts over 18 (1)
the years
The voice of the market 18 (5)
2 Characteristics and Construction 23 (56)
Characteristics of Point and Figure charts 25 (4)
Constructed with Xs and Os 26 (1)
Up moves and down moves 26 (1)
Xs and Os called boxes 26 (1)
Box size 26 (1)
Reversal size 26 (1)
Variable sensitivity 27 (1)
Price gaps 27 (1)
Price on Y-axis but no time on X-axis 27 (1)
Two-dimensional charts 28 (1)
No volume 28 (1)
Demand and supply 28 (1)
Naming Point and Figure charts 28 (1)
Point and Figure construction 29 (15)
1-box reversal charts 30 (1)
Why change columns when price reverses? 30 (2)
One-step-back 32 (2)
Using other box sizes 34 (1)
Construction example of a 1-box 35 (1)
reversal chart
Important note 36 (5)
Filling and emptying glasses 41 (1)
Example of building a 1-box reversal 42 (2)
Point and Figure chart
3-box reversal charts 44 (9)
Constructed from 1-box charts 44 (1)
Unique asymmetric filter 44 (3)
Consider the value of the box 47 (1)
Example of a 10 × 3 Point and 47 (5)
Figure chart
Constructed from the 1-box chart 52 (1)
Characteristics of 3-box reversal charts 52 (1)
5-box reversal charts 53 (1)
2-box and other reversal charts 54 (1)
2-box reversal charts 54 (1)
Characteristics of 2-box reversal charts 55 (1)
Other box reversals 55 (1)
Summary so far 55 (3)
1-box reversal charts 56 (1)
3-box reversal charts 56 (1)
5-box reversal charts 57 (1)
2-box reversal charts 57 (1)
The move from intra-day to end-of-day - 58 (12)
the great controversy
Close only method 59 (1)
Plotting a close only end-of-day Point 59 (1)
and Figure chart when data is being
received in real-time
High/low method 60 (1)
Example of a 10 × 3 Point and 61 (6)
Figure chart using high/low prices
Plotting high/low end-of-day Point and 67 (1)
Figure charts when data is being
received in real-time
Problems with the high/low method 67 (1)
Other construction methods 68 (1)
The low/high method 68 (1)
The open/high/low/close method 69 (1)
End-of-interval time frame Point and 70 (1)
Figure charts
Log scale Point and Figure charts 71 (6)
Naming log scaled Point and Figure 73 (1)
charts
Choosing between log and arithmetic 74 (3)
Stops and log scale Point and Figure 77 (1)
charts
Summary 77 (2)
3 Understanding Patterns and Signals 79 (64)
1-Box and 3-Box Reversal Charts 81 (1)
Do not ignore 1-box reversal charts 81 (1)
Point and Figure signals 82 (13)
Double-top and bottom patterns 82 (2)
Continuation as well as reversal 84 (2)
Reversal patterns in 1-box charts 86 (3)
Triple-top and bottom patterns 89 (1)
Triple-top and bottom patterns in 3-box 89 (2)
charts
Triple-top and bottom patterns in 1-box 91 (1)
charts
Compound patterns 91 (1)
Knowing when to ignore signals 92 (2)
Control and reassertion of control 94 (1)
The strength of the pattern 95 (13)
Upside and downside triangles - sloping 95 (3)
bottom or sloping top
Symmetrical triangles - sloping top and 98 (3)
sloping bottom
The breakout and pullback 101 (1)
3-box catapult patterns 101 (2)
1-box catapult patterns 103 (5)
Terminology clarification 108 (1)
1-box and 3-box patterns 108 (1)
Traps 108 (4)
Bull trap 109 (1)
Bear trap 109 (1)
Trading traps 110 (1)
Shakeouts 111 (1)
Broadening patterns 112 (3)
1-box broadening patterns 114 (1)
Bullish and bearish patterns that reverse 115 (5)
Bearish pattern reversed 115 (2)
Bullish pattern reversed 117 (1)
Comparing 3-box and 1-box charts 118 (2)
Poles 120 (7)
Trading strategy with poles 122 (2)
Poles in 1-box reversal charts 124 (3)
Opposing poles 127 (1)
Other Patterns 127 (1)
Congestion analysis 128 (12)
The fulcrum 129 (3)
Strength and weakness in fulcrum 132 (6)
patterns
Final word on patterns 138 (1)
2-box reversal charts 138 (2)
Summary 140 (3)
4 Understanding and using Trend lines 143 (32)
Trend line breaks 146 (2)
45° Bullish support and bearish 148 (16)
resistance lines
Rationale for bullish and bearish 148 (2)
45° trend lines
Where to draw bullish support and 150 (1)
bearish resistance lines
45° trend line drawing rules 151 (3)
Implications of different box reversals 154 (2)
on 45° trend lines
45° lines and log scaled charts 156 (1)
Internal 45° trend lines 157 (3)
Measuring the strength of 45° lines 160 (1)
Parallel trend lines 161 (3)
Trend lines and signal rules 164 (8)
Exercise in drawing 45° trend lines 164 (5)
on a log scale chart
45° or subjective - which do you 169 (3)
draw?
Summary 172 (3)
5 Projecting Price Targets 175 (64)
Counts on 1-box reversal charts 177 (12)
How to establish a horizontal count on 178 (11)
1-box reversal charts
Summary of 1-box counts 189 (1)
Counts on 3-box reversal charts 189 (17)
Vertical counts on 3-box reversal charts 190 (1)
How to establish upside targets using 191 (3)
the vertical count method on 3-box
charts
How to establish downside targets using 194 (3)
the vertical count method on 3-box
charts
Vertical count establishment and 197 (2)
activation
When should activation take place? 199 (1)
The logic of the vertical count 199 (1)
Horizontal counts on 3-box reversal 199 (1)
charts
How to establish upside targets using 200 (3)
the horizontal count method on 3-box
charts
How to establish downside targets using 203 (2)
the horizontal count method on 3-box
charts
Horizontal count establishment and 205 (1)
activation
The logic of the horizontal count 205 (1)
Things you should know about Point and 206 (12)
Figure counts
Targets have no time-scale 207 (1)
Nearest counts must be achieved first 207 (1)
Clustering of counts 207 (1)
Negating a count 207 (1)
Opposing counts 208 (1)
Using counts to assess trend strength 209 (1)
Unfulfilled counts 210 (1)
Improbable and impossible counts 210 (2)
Counts on different time horizons 212 (3)
Good counter or bad counter 215 (1)
Counts on close, high/low, low/high or 216 (2)
ohlc charts
Counts on other box reversal charts 218 (1)
Counts on log scale charts 219 (3)
Accuracy of counts on log scale charts 221 (1)
De Villiers and Taylor 3-box horizontal 222 (1)
counts
Risk and reward 222 (11)
Risk: reward ratio from vertical counts 223 (2)
on 3-box charts
Risk: reward ratio from horizontal 225 (3)
counts on 3-box charts
Risk: reward ratio from horizontal 228 (3)
counts on 1-box charts
Risk: reward ratios on shorts 231 (1)
Final word on risk: reward 232 (1)
Another way of projecting targets - 233 (3)
Fibonacci retracements
Summary 236 (3)
6 Analysing Point and Figure Charts 239 (72)
Implications of changing the construction 242 (4)
parameters
Changing the reversal size 242 (1)
Changing the box size 243 (1)
Changing the data time frame 244 (1)
Changing the construction method 245 (1)
Choosing your chart parameters 246 (16)
Knowing your time horizon 246 (1)
Choosing the reversal size 246 (4)
Choosing the correct box size 250 (4)
Choosing the construction method 254 (5)
Choosing the data time frame 259 (3)
Choosing your scaling 262 (1)
Drawing your first Point and Figure chart 262 (2)
Consistency 264 (1)
Showing gaps 264 (2)
Other ways of determining box size 266 (3)
Volatility based box sizes 266 (3)
Analysis of 3-box reversal charts 269 (19)
Flipping charts 273 (7)
Taking a shorter-term view 280 (3)
Changing time frames 283 (5)
Analysis using 1-box reversal charts 288 (12)
Taking a shorter-term view 297 (3)
Analysis of 2-box charts 300 (2)
Stoplosses on Point and Figure 302 (6)
Placing a stop to limit a loss 302 (1)
Placing a stop to protect a profit 303 (1)
Trailing stops 303 (3)
Trailing stops based on volatility 306 (1)
Stoplosses based on column changes 307 (1)
Stoploss summary 308 (1)
Low-risk entries 308 (1)
Summary 309 (2)
7 Point and Figure Charts of Indicators 311 (16)
Point and Figure of relative strength 314 (7)
Using Point and Figure counts on 320 (1)
relative strength charts
Point and Figure of on-balance volume 321 (2)
Point and Figure of oscillators 323 (2)
Summary 325 (2)
8 Optimisation of Point and Figure Charts 327 (22)
The case for and against optimisation 329 (1)
Approaching Point and Figure optimisation 330 (12)
Test parameters 333 (1)
Data consistency and adaptability 333 (3)
Alternative exits 336 (1)
Optimisation of FTSE 100 constituents 336 (1)
for longs
Optimisation of S&P 100 constituents 337 (2)
for longs
Optimising for shorts 339 (1)
Optimisation of FTSE 100 constituents 339 (2)
for shorts
Optimisation of S&P 100 constituents 341 (1)
for shorts
Optimising for specific patterns 342 (5)
Catapult entry signals 342 (1)
Optimisation of FTSE 100 constituents 342 (2)
for catapult entry for longs
Optimisation of S&P 100 constituents 344 (1)
for catapult entry for longs
Triple-top entry signals 345 (1)
Optimisation of FTSE 100 constituents 345 (1)
for triple-top entry for longs
Optimisation of S&P 100 constituents 346 (1)
for triple-top entry for longs
Conclusion 347 (2)
9 Point and Figure's Contribution to Market 349 (26)
Breadth
Introduction 351 (1)
A caveat 352 (1)
Bullish Percent 353 (14)
Analysing Bullish Percent as a line 353 (4)
chart
Divergence 357 (1)
Adjusting the sensitivity of Bullish 357 (3)
Percent
Analysing Bullish Percent as a Point 360 (3)
and Figure chart
Close only, high/low, low/high or ohlc 363 (4)
data
Bullish Trend Percent 367 (3)
X-Column Percent 370 (1)
Other Market Breadth Indicators based on 371 (1)
Point and Figure
Market Breadth on other markets 372 (1)
Summary 373 (2)
10 Advanced Point and Figure Techniques 375 (46)
Moving averages on Point and Figure 377 (17)
How to use moving averages on Point and 381 (1)
Figure charts
Moving averages on 3-box reversal charts 381 (9)
Moving averages on 1-box reversal charts 390 (3)
Fine-tuning the guidelines 393 (1)
Final word on moving averages 393 (1)
Parabolic stop and reverse (SAR) on Point 394 (7)
and Figure
Taking earlier signals 395 (1)
Parabolic on 1-box charts 396 (2)
Parabolic acceleration factor 398 (2)
Combining parabolics with trend lines 400 (1)
Bollinger Bands on Point and Figure 401 (7)
Overbought or oversold 401 (2)
Volatility and the squeeze 403 (3)
More Bollinger Bands examples 406 (2)
Activity histograms 408 (11)
Price Level Activity histogram 408 (6)
Volume at Price Level histogram 414 (3)
Activity at Price Level or Volume at 417 (1)
Price Level
The effect of gaps on Activity 417 (2)
histograms
Summary 419 (2)
11 Chart Examples 421 (24)
Spot Euro Dollar (daily) 0.01 × 1 424 (1)
Spot Euro Dollar (60 minute) 0.01 × 425 (1)
1
Gold PM Fix 5 × 1 426 (1)
Gold PM Fix 5 × 3 427 (1)
Brent Crude Index (IPE) 2% × 1 428 (1)
Brent Crude Index (IPE) 1% × 3 429 (1)
MIB 30 Index 1% × 3 430 (1)
Nikkei 225 Index 100 × 3 431 (1)
Hang Seng Index 100 × 3 432 (1)
DJ Euro Stoxx 50 1 % × 3 433 (1)
Infineon Technologies AG 2% × 3 434 (1)
IBM 1% × 3 435 (1)
Compuware Corporation 1% × 1 436 (1)
Intel Corporation 0.25 × 3 437 (1)
American Express Company 1.5% × 3 438 (1)
Three month sterling interest rate future 439 (1)
(June 2005) (60 minute) 0.025 × 1
Gold 15 × 3 440 (1)
US 10 year yield 0.025 × 3 441 (1)
Brent Crude $1 × 3 442 (1)
Summary 443 (2)
12 Dividing your Stocks into Bullish and 445 (8)
Bearish
Adding relative strength to the search 451 (2)
Conclusion 453 (6)
References and Further Reading 459 (2)
Appendix A Construction of 2-Box Reversal Charts 461 (2)
Example of a 10 × 2 Point and Figure chart 463 (6)
Appendix B Construction of 1-Box Reversal 469 (2)
High/Low Charts
Example of a 10 × 1 Point and Figure 471 (12)
chart using high/low prices
Appendix C Construction of Log Scaled Charts 483 (4)
Index 487
