按键盘上方向键 ← 或 → 可快速上下翻页，按键盘上的 Enter 键可回到本书目录页，按键盘上方向键 ↑ 可回到本页顶部！
————未阅读完？加入书签已便下次继续阅读！
hart with a 50 point box？ This。would mean 50 points in the direction of the column produces。a new box and 150 points。against the direction produces。a reversal and a new column。 A day trader could not possibly make money with such an insensitive chart； but a medium…term investor may be quite happy with a chart drawn with those parameters。 A short…term trader would be looking at perhaps。a 5 point or 10 point box size。 Thus； changing the box size does change the time horizon—though not the time frame—of the chart。 The smaller the box size； the more sensitive the chart； and the shorter the time horizon。 Typically； a point and figure analyst will look。at two； perhaps。three point and figure charts of the same instrument but with different box sizes。and/or reversals。to get a clearer picture of what is。happening。
Internal 45° Trend Lines
Trend lines。may be drawn in two ways on point and figure charts： either subjectively。bynnecting higher lows。for an uptrend or lower highs。for a downtrend； or objectively by。drawing trend lines。at 45° from highs。or lows。 These objective lines are most effective on 3…box reversal charts。and are rarely used on 1…box charts。 It’s。a unique feature of point and figure charts。because only point and figure charts。are drawn on a squared grid allowing the 45 lines to be drawn in the same position no matter what the aspect ratio of the chart。
The lines are drawn through the corners。of the boxes。from bottoms。and tops； providing what are called bullish support and bearish resistance lines。 They are the lines。that show the last level of support in an uptrend or resistance in a downtrend。 Evidence shows。that the price behaves。extremely well with these 45° lines； which are therefore used to determine major trend changes。 Consider what is。required to remain above a 45° trend line： The price must rise by at least five boxes。for even three that it falls； and if it can't do that； it can’t maintain a bull trend。 Similarly； to maintain a 45° downtrend； the price must fall by at least five boxes。for every three that it rises。
***************
161
***************
ent reaction points。cluster together。 This。is。clearly seen in the current uptrend； in which four internal lines。run close together。 This。provides。a significant and important support area for the uptrend； which bees。just as。important as the main 45°。uptrend line 3； if not more so。 The more times。an internal line is。touched； the more important ii bees。 This is。because the starting point of the line and the 45°。angle； not the price action； determine a 45°。line position。
The main advantage of 45 trend lines。is。that they are objective； and no amount of subjective interpretation or positioning can influence them。 As。you can see； they cane up the chart into bull and bear trends and are very effective in showing areas。of support and resistance。
Using Point and Figure Price Targets Effectively
From the earliest days。of point and figure analysis； analysts。have been establishing price targets。from the charts。derived from the width of congestion areas。 Initially； the targets were on 1…box reversal charts； but 1…box price targets。are less。objective than those obtained from 3…box charts； which are therefore more popular today。
There are two ways。to establish targets。with a 3…box reversal chart。 The vertical count is。based on the thrust off a low or a high； and the horizontal count is based on the width of a top or bottom pattern。 The vertical count is three times。the length of the thrust column； whereas。the horizontal count is。three limes。the width of the pattern。 Because puters。now perform these calculations； the temptation is。to count even column and pattern until one produces the required result。 Certain rules； however； should be adhered to。 Vertical counts should be established only from the first thrust off a low or a high； or the thrust off an intermediate mini…bottom or mini…top； or the breakout column from a pattern。 Horizontal counts； however； may。be established only from a top or bottom pattern where there is。a clear column moving into the pattern and then some sidewaysngestion and a clear column moving out of the pattern。
Remember that these are potential targets and cannot be achieved with precision。 Some may not be achieved at all； in fact； the last target in a trend seldom is。 However； the achievement or non…achievement of a target gives。important information about the strength of the trend。 In bull trends； all upside targets。should be achieved or exceeded； whereas。downside targets。should not be reached。 In downtrends； all downside targets。should be achieved or exceeded； whereas。upside targets。should not be reached。 So assessing trends bees。an evidence…gathering process。 If； during a bull trend； an upside target is。not achieved or is。negated； that is。evidence that the uptrend is。weakening。 If at the same time； downside targets。start to be reached； this。is。further bearish evidence and an indication that the uptrend is。ending。 The converse is。true for downtrends； where evidence that a downtrend is。deteriorating can be seen when downside targets。are not achieved or canceled。 bined with the break of internal 45°。lines； using point and figure targets。this way allows。you to see trend deterioration before the main trend line is。broken。
The chart in Figure 8。4； showing the top in the Nasdaq； is。a good example of how targets。can provide evidence about the strength of the trend。 Upside count （a） of 3；400 from the July 1999 low was。exceeded as。wasunt （b） of 1；920 from the October 1999 low； indicating a strong bull trend。 At this。stage； everything is。in place for the achievement of the new target （c） of 5；640 from the January 2000 low。 The Nasdaq turned； however； and allowed the establishment and activation of downside count （d） of 3；720 from the February。2000 top and another count （e） of 3；460 from the second top in March 2000。 At this。stage the bull trend is still in place and there seems little likelihood that these downside counts。will be achieved。 But in April 2000； both downside counts were achieved； negating the upside count （c） of 5；640 by passing through the bottom of the column from which that count was。established。 Although t