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21st Century Point and Figure: New and Advanced Techniques for Using Point and Figure Charts by Jeremy du Plessis

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Chapter Six. Volume on Point and Figure Charts

Introduction

Volume is important in Technical Analysis because it tells you the amount of interest there is in any price move. A price rising on high volume warrants more attention than one rising on low volume.

That Point and Figure charts take no account of volume is a basic tenet of Point and Figure charting laid down a hundred years ago. It is not that Point and Figure analysts prefer not to have volume, it is that traditionally there has been no room for volume in a Point and Figure chart. This traditional inability to show volume has been the source of one of the criticisms levelled at the method, but it is no longer the case today.

Volume can be shown in three ways on Point and Figure charts: ...

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