The Definitive Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method

by Jeremy Du Plessis

Point and Figure charts are one of the great secrets of the Technical Analysis world. Highly sophisticated and with a thoroughbred pedigree, they can, however, be overlooked by traders today. Jeremy du Plessis - one of the foremost Point and Figure experts in the world - returns with a fully updated second edition of this definitive guide in an effort to redress this imbalance.

This second edition, with an extensive revision to the text and introduction of brand new techniques, demystifies the world of Point and Figure charting. It includes a detailed explanation of the history and development of the technique from its invention to the modern day, and covers the makeup of the chart patterns, why they are created, and how to interpret them.

Throughout, readers are encouraged to understand Point and Figure charts from first principles, rather than just remember the names of a series of patterns. It is the first major work for 50 years to discuss in depth the original 1-box reversal method of Point and Figure charting and contrast it with the more popular 3-box reversal method. Further, the explanation of how to use Point and Figure charts to project targets and calculate risk-reward ratios is the most comprehensive ever seen.

Also featured in the second edition

- A step-by-step analysis of the FTSE 100 Index using the 3-box method, as well as the NASDAQ Composite Index, using the 1-box method

- A detailed discussion of optimising techniques

- An in-depth chapter on Analysing Point and Figure charts, extensively rewritten from the first edition

- A new explanation of how Point and Figure parameters are chosen and the implications of choosing them

- Two new Point and Figure construction methods never seen before

- Point and Figure's contribution to market breadth, with a look at bullish percent and two brand new indicators

- Full discussion of Point and Figure gaps and how they provide valuable information about the chart

- Lesser known, more advanced techniques such as the use of moving averages, parabolic SAR and Bollinger Bands on Point and Figure charts

- Price and volume activity histograms and how they provide information about support and resistance

All this is illustrated with numerous colour charts and observations from years of trading experience.
According to du Plessis, Point and Figure charts are the 'voice of the market'. This book helps you listen to, and understand, that voice.

Part of the Market Technicians Association (MTA) Required Reading list.

Shortlisted for the 2013 Technical Analyst Book of the Year Award

Genres: Business

540 pages, Hardcover

First published July 30, 2005

Reviews

[Liz Dean · Rating 5 out of 5]

OK- this is a great book. I really enjoyed his presentation (very humble, honest, down-to-earth guy). This really is DEFINITIVE for point and figure. I think anyone who trades using technical analysis will get something from this. It's a keeper- once you buy it, it's going to keep your other trading books company on the shelf for a long time.

[Lucas Davidson · Rating 5 out of 5]

A long and arduous read, but absolutely fits the bill of "definitive." I'm new to p/f charting, but have been using it since starting the book and can confirm it can be effective as supplement to all the other tools in a trader's toolbox! Looking forward to honing the skills.

[Joseph · Rating 5 out of 5]

a real classic work. with a detailed history of P&F. it is always interesting to understand a method's origin.

all basic concepts on P&F can be studied from this book

[David Siefert]

Excellent coverage on the topic of Point and Figure charting.