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21st Century Point and Figure: New and Advanced Techniques for Using Point and Figure Charts

Book Description

Advancing Point and Figure in the 21st Century Point and Figure has been around for over 130 years and the method is just as essential for chart analysis today as it always has been. While the basic principles of the technique have remained unchanged, those working with Point and Figure must still push the boundaries of how it is used, looking to make it even more insightful and powerful. This is exactly what Jeremy du Plessis has achieved with 21st Century Point and Figure. Previously, it was thought that the lack of time on Point and Figure charts meant that time-based tools and indicators could not be used, and lack of volume meant that the importance of individual columns could not be determined. Jeremy du Plessis shows definitively that neither is the case and that with the use of lateral thinking there are also a host of other new techniques that can be added to Point and Figure charts and analysis. In this advanced practical guide, du Plessis explains: - How to use moving averages, Bollinger bands, Donchian channels and parabolic stop and reverse with Point and Figure charts. - How time-based indicators such as overbought/oversold, RSI, directional movement and MACD can be used with Point and Figure charts. - How column volume can be used to assess a column's strength and how volume at box level can be used to assess support and resistance areas. - How traditional accumulation distribution lines, such as on-balance volume and volume-price trend, can be used to enhance the reading of the chart. - How the analysis of relative strength and spreads can be enhanced using these new techniques. - Two new Point and Figure based market breadth indicators. Finally, he introduces a new Point and Figure based oscillator that can also be used on time-based charts. All topics are illustrated with numerous high-quality, full colour charts and observations from years of trading experience. The techniques described here open up a whole world of new and advanced analysis tools. You will see that there is more to Point and Figure than you ever imagined, and that it is more flexible than has ever been realised before. If you employ Point and Figure analysis, ensure you don't miss out on these powerful new techniques - be sure to bring your analysis into the 21st century.

Table of Contents

  1. Contents
  2. About the Author
  3. Acknowledgements and Thanks
  4. Preface
    1. Structure of this book
      1. Chapter 1 – Quick Refresher on Point and Figure
      2. Chapter 2 – 21st Century Chart Construction
      3. Chapter 3 – Moving Averages on Point and Figure Charts
      4. Chapter 4 – Using Other Tools on Point and Figure Charts
      5. Chapter 5 – Indicators of Point and Figure Charts
      6. Chapter 6 – Volume on Point and Figure Charts
      7. Chapter 7 – New Point and Figure-based Techniques
      8. Chapter 8 – Advanced Analysis of Relative Strength and Spreads
      9. Chapter 9 – 21st Century Market Breadth
    2. Technical Analysis software and data
  5. Introduction
    1. Which instruments work best with Point and Figure?
    2. Point and Figure terminology
  6. Chapter One. Quick Refresher on Point and Figure
    1. Development of Point and Figure
    2. Point and Figure Construction
    3. Point and Figure Signals
    4. Trend lines and Targets
  7. Chapter Two. 21st Century Construction
    1. Introduction
    2. 20th Century Box Sizes
    3. 21st Century Box Sizes
      1. Box sizes based on volatility
        1. Box size based on standard deviation
        2. Box size based on Average True Range (ATR)
      2. Box sizes based on other formulas
    4. 21st Century Construction Methods
      1. Low/high method
      2. Open/high/low/close method
    5. Summary
  8. Chapter Three. Moving Averages on Point and Figure Charts
    1. Introduction
    2. Constructing a Moving Average on a Point and Figure Chart
      1. Moving Averages and the Last Column
    3. What are Moving Averages used for?
    4. How to use Moving Averages on Point and Figure Charts
      1. What constitutes a cross of a moving average?
      2. Using Moving Averages on 3-Box Reversal Charts
        1. Method 1 – Using the position of the moving average in conjunction with Point and Figure signals
        2. Method 2 – Using the position of the column midpoint and the moving average
        3. Method 3 – Using the position of the column midpoint and the moving average in conjunction with Point and Figure signals
      3. Using Moving Averages on 1-Box Reversal Charts
        1. Method 1 – Using the position of the moving average in conjunction with Point and Figure signals
        2. Method 2 – Using the position of the column midpoint and the moving average
        3. Method 3 – Using the position of the column midpoint and the moving average in conjunction with Point and Figure signals
      4. Using Two Moving Averages on Point and Figure
      5. Long/Short
      6. Using Moving Averages on Other Box Reversal Charts
      7. Choosing Moving Average Lengths
      8. Close, High/Low, Low/High or OHLC Construction
      9. Moving Average Calculations
    5. Moving Average Chart Examples
      1. 3-box reversal
        1. Adding moving average bands
      2. 1-box reversal
    6. The 4th Method
    7. Summary
  9. Chapter Four. Using Other Tools on Point and Figure Charts
    1. Introduction
    2. Donchian Channels
      1. Obtaining buy and sell signals using Donchian channels
    3. Bollinger Bands
      1. Obtaining buy and sell signals using Bollinger bands
      2. Bollinger band squeeze
    4. Parabolic Stop and Reverse (SAR)
      1. Using the Parabolic with 3-box reversal charts
        1. Method 1 – Using the penetration of the parabolic as the signal
        2. Method 2 – Using the Parabolic switch as the alert to take the next Point and Figure signal
        3. Method 3 – Using the midpoint of the column crossing the Parabolic
      2. Using the Parabolic with 1-box reversal charts
        1. Method 1 – Using the penetration of the Parabolic as the signal
        2. Method 2 – Using the Parabolic switch as the alert to take the next Point and Figure signal
        3. Method 3 – Using the midpoint of the column crossing the Parabolic
      3. Other ways of using the Parabolic
      4. Parabolic acceleration factor
    5. Summary
  10. Chapter Five. Indicators of Point and Figure Charts
    1. Introduction
      1. Understanding Divergence
      2. Displaying Indicators with Point and Figure Charts
    2. Overbought/Oversold Oscillator (OBOS)
    3. Moving Average Convergence/Divergence (MACD)
      1. Adding MACD Histogram
    4. Relative Strength Index (RSI)
    5. Directional Movement
    6. Indexia Market Tracker
    7. Summary
  11. Chapter Six. Volume on Point and Figure Charts
    1. Introduction
    2. Column Volume
    3. On-balance Volume (OBV)
    4. Volume-price Trend (VPT)
    5. Volume at Price
      1. A note on price level activity
    6. Summary
  12. Chapter Seven. New Point and Figure-Based Tools and Indicators
    1. Introduction
    2. Point & Figure Trend Oscillator
    3. Point and Figure’s Gift to Time-Based Charts
      1. Point & Figure Trend Oscillator for time-based charts
      2. 45° trend lines on time-based charts
    4. Point and Figure Reversal Alert
    5. Summary
  13. Chapter Eight. Advanced Analysis of Relative Strength and Spreads
    1. Relative strength
      1. A note about relative strength scaling
      2. Using advanced techniques on relative strength
    2. Spreads
      1. Using advanced techniques on spreads
    3. Summary
  14. Chapter Nine. 21st Century Market Breadth
    1. Analysing Percentage Market Breadth Charts
    2. 20th Century Market Breadth
    3. 21st Century Market Breadth
      1. X-Column Percent
      2. Bullish Trend Percent
    4. Using Breadth Indicators Together
    5. Adjusting Your Time Horizon
    6. Other Ways to Measure Market Breadth
    7. Summary
  15. Conclusion
  16. References and Further Reading