Chartcraft

Chartcraft pioneered the use of point & figure (P&F) charting in the 1950s. Their analytical tools have become industry standards. For example, market technicians swear by Chartcraft's NYSE Bullish % and Advisors Sentiment Survey to this day. This book was originally part of a monthly subscription service. I purchased it apart from the series as a used book from Amazon.com. Each monthly volume contains P&F charts on all NYSE common stocks and over 800 OTC issues.

The P&F charts contained in this book are standard 3-point reversal charts. They allow the reader to visualize such features as the trends of each stock, their direction, buy/sell signals, support and resistance areas, and trend line penetrations.

A P&F chart is one-dimensional. Both the horizontal axis and the vertical axis measure price. Xs are used when the price of a stock is going up. Os are used when the price of a stock is going down. Columns of Xs and Os alternate. Xs and Os are never intermingled in the same column.

P&F charts are indigenous to stock market trading -- they originated in the stock market and have been used exclusively in the stock market since long before line or bar charts were introduced.

The best stock to buy is: (1) a stock that has given a buy signal by penetrating a previous top, (2) has a Bullish Support Line, (3) has no Bearish Resistance Line, and (4) has Bullish Relative Strength.

The best stock to sell short is: (1) a stock that has given a sell signal by penetrating a previous bottom, (2) has a Bearish Resistance Line, (3) has no Bullish Support Line, and (4) has Bearish Relative Strength.

My Favorite Feature. The contents of page 5 are the reason why I bought this book. This page consists of a practice exercise in P&F chart construction covering the period from May 2, 1976 through January 31, 1977. Date, high price, low price, and instructions for chart entries are tabulated. The emergent chart is shown so that the worker of the exercise can check his or her work against the real thing.… (meer)