Interesting Charts #3
Point & Figure Charts
Point & Figure (P&F) Charts are without doubt the most powerful tool for any Technical Analyst. The trouble is that most other Technical Analysis systems either leave them out or make a very poor attempt at producing them clearly and accurately. INDEXIA prides itself in having the best P&F charts in the business. The charts below will prove it.
- INDEXIA II and INDEXIA II Plus allow you to draw P&F charts based on the close, or on the high & low (the A.W. Cohen method). You won't find another program with this ability
- INDEXIA II and INDEXIA II Plus will also draw 45 degree trend lines and parallels automatically.
- INDEXIA II Plus goes one step further and will do vertical and horizontal P&F counts for you.
- INDEXIA II Plus will also allow you to draw log scale P&F charts. Try and find another system that does this.
- INDEXIA is one of the only Technical Analysis systems which draws 1 box reversal charts correctly.
The charts below illustrate all these features
3 Box Reversal chart based on Close
The P&F chart of Lasmo below is based on the close price only (see below for the same chart based on high & low). It is a 5x3 P&F meaning that each X and O is worth 5 points and the price must reverse by 3 boxes or 15 points to change columns. Notice the 45 degree bullish support and bearish resistance lines. Notice also, the various vertical counts which the program has established.
3 Box Reversal chart based on High and Low
The chart above is based on the close, but INDEXIA also allows you to draw P & F charts based on the high & low. The chart of Lasmo below is based on the high & low. Notice that the consolidation areas are much wider. Once again the bullish and bearish lines are shown, as are the counts.
3 Box Reversal Log Scaled Chart
INDEXIA II Plus also allows you to draw log scale P & F charts by entering a percentage box size instead of points. The chart below is a 2% x 3 P & F chart of Lasmo. Notice how the value of each box changes as the price rises. INDEXIA P & F charts always have 10 boxes between the horizontal scaling lines, making it easy to count the number of X's and O's. Bullish and bearish lines can also be drawn on log scale charts, as well as vertical and horizontal counts. Because of the log scaling, it would be impossible to establish there targets by hand.
1 Box Reversal Charts based on Close or High & Low
INDEXIA is one of the few Technical Analysis Systems that understands and draws 1 box reversal charts correctly. Most other famous Technical Analysis programs draw them incorrectly. They always move one column across, no matter how many points are reversed. This is incorrect.
If the price reverses by one box and then immediately reverses back again the O and X must appear in the same column as the chart below illustrates. Unfortunately, we can't show you the incorrect way, because our software always does draws the charts correctly, but next time you are looking at a competitor's P & F chart, notice that they change columns each time. This totally distorts the width of the chart and hence the trend lines and horizontal counts.
The chart below shows four examples of 1 box reversal charts. Notice that when the price reverses by one box (5points in the example) and then immediately reverses back again by one box, the X & O are in the same column.
Why not print this page so you can inspect the quality of INDEXIA's Point & Figure Charts at your leisure.
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