Grad Call Summary 9-11-08

Hey Gang,

 

In tonight’s call, we discussed Point and Figure charting.  This is a style of charting that studies pure price movement without the effects of time.  Personally, I use P&F charting to understand the long term trend of my potential trades.  By trading with the P&F trend, entry and exit points for medium term to long term trades becomes very simple. 

 

P&F Charts have several advantages:

• Eliminate the insignificant price movements that often make bar charts appear ‘noisy,’
• Remove the often misleading effects of time from the analysis process,
• Make recognizing support/resistance levels much easier,
• Make trend line recognition a ‘no-brainer’,
• Help you stay focused on the important long-term price developments

 

To Create a P&F chart on Stockcharts.com, go to the front page and enter a symbol.  Then select the style and change it to P&F.  This will give you a chart with a series of Xs and Os that looks something like the following. 

 

 

I encourage you to click on the following links on the stockcharts page found below the created charts.  They will give you great learning on P&F Charts. 

            ‘Instructions’

            ‘Understandings’

            ‘About P&F Alerts’

            ‘About Price Objectives’

 

Happy trades!

Jeff