Point & Figure Charts

Introduction:

Point & Figure Charts were developed in the late 1800s by Charles Dow of Dow-Jones fame.

Benefits of a Point & Figure Chart:

1)

A Point & Figure Chart gives a clear picture of who is in control of a stock:

When buyers are in control, a column of Xs forms on the chart (Xs represent a rising price).

When sellers are in control, a column of Os forms on the chart (Os represent a falling price).

2)

A Point & Figure Chart issues precise Buy and Sell Signals:

A Buy signal is issued when the current column (on the far right of the chart) is Xs and when that column

of Xs rises above the previous column of Xs by 1 box.  This is called a Double-Top Breakout (D-Top) or a

Triple-Top Breakout (T-Top).

Double-Top Breakout:

A Sell signal is issued when the current column (on the far right of the chart) is Os and when that column

of Os falls below the previous column of Os by 1 box.  This is called a Double-Bottom Breakdown (D-Bot) or a

Triple-Bottom Breakdown (T-Bot).

Double-Bottom Breakdown:

3)

A Point & Figure Chart automatically generates and displays a 'brick wall' of Support called a

a Bullish Support Line (BSL) and a 'brick wall' of Resistance called a Bearish Resistance Line (BRL).

When a stock falls to its rising Bullish Support Line (BSL), it is most often time to venture a purchase.

A violation of the Bullish Support Line, however, represents a Sell Signal.

When a stock rises to its declining Bearish Resistance Line (BRL), it is most often time to venture a short-sale.

A violation of the Bearish Resistance Line, however, represents a Buy Signal.

Point & Figure Services of the Support & Resistance Report

1)

The important aspects of a Point & Figure Chart as described above are included in each stock's

Support & Resistance Table and are used to help identify areas of 'Gathering Support' and 'Gathering Resistance'.

2)

A stock's Point & Figure Chart may be viewed by clicking on the Point & Figure Chart link near the bottom of

each stock's written comments (Written comments are found on the 'Nightly Analysis' web site).

3)

QuoteTracker Users

receive real-time alerts whenever a stock:

- falls to Support at its Bullish Support Line (BSL)

- rises to Resistance at its Bearish Resistance Line (BRL)

- issues a Buy Signal by rising to its Double-Top (D-Top) or Triple-Top Breakout (T-Top) price.

- issues a Sell Signal by falling to its Double-Bottom (D-Bot) or Triple-Bottom Breakdown (T-Bot) price

- rises to Resistance at the High End of its 10-Week Trading Band (10wtbHI)

- falls to Support at the Low End of its 10-Week Trading Band (10wtbLO)