This article written by Thomas Kaschel was originally published in the October 2011 issue of Traders' Magazine.Mr Thomas Kaschel is the holder of a CIIA (Certified International Investment Ana- lyst)
Learn More About Point and Figure
Point and Figure Analysis
Point and Figure Charting
Today's investment industry is filled with a variety of new strategies that can be used to evaluate market price movements, but many of these methods never seem to deliver on what they promise. There is one approach to investment analysis, however, that has proven itself in all types of markets, and it's called Point and Figure Charting.
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.
When technicians chart using point & figure charts, they are doing so to identify and stay in longer trends. We do not want to be shaken out too early on a trade that could have yielded much more profit.