The Definitive Guide to Point and Figure
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. This should change with the long-awaited publication of this book. Jeremy du Plessis - one of the foremost Point and Figure experts in the world - has written what can truly be described as the definitive guide to the topic.
For the first time this book thoroughly demystifies the world of Point and Figure charting, with a detailed explanation of the history and development of the technique from its invention to the modern day. The book covers the makeup of the chart patterns, why they are created, and their interpretation. 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 covered in detail 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.
- Point and Figure's contribution to market breadth with bullish percent.
- Lesser known, more advanced techniques such as the use of moving averages, parabolic SAR and Bollinger Bands on Point and Figure charts.
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.
Publisher: Harriman House
Publish date: 2005-08-04
Writer knows his subject
The structure is generally good. It starts with an introduction to technical analysis which I guess is too short and too basic and could have been left out. The beef starts with the chapter on the history of Point & Figure charts. The chapter is enlightening and informative. Next is characteristics and construction which explains what makes a PF chart and how it is constructed. I was surprised at how many different methods there are. The next chapter is called understanding PF and details patterns and how they are created. He concentrates on how and why there is a pattern which is good. It is also the first time I have seen the old one point reversal charts and modern 3 point charts reconciled. There is a lucid description of the way to apply trend lines and what they mean. A new technique using 'internal lines' is very useful. The chapters just get better and better. There is a whole chapter on targets that has for the first time explained this part of PF to me better than ever before. There is some ground-breaking detail on risk and reward ratios. I am already using these. He does a full step-by-step analysis of an English FT index as well as the Nasdaq Composite. It doesn't stop there. A chapter on the use of moving averages, John Bollinger's bands and Wilder's parabolic on PF charts is clearly a new area. He covers what he calls market breadth and Bullish Percent in meticulous detail. Every step of the way he describes exactly how everything is calculated.
It is an expensive book but its hardback and its in color. That's something you don't ever see. There are lots example charts. The contents are detailed and the index is very good.
I like the writing style. I highly recommend it
A 'One Stop Shop' On P&F
Top Notch Text Book
I think the chapters on advanced use of Point and Figure charts with indicators and on optimisation of charts add a level of detail that sets this book apart from its rivals.
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