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Market Dynamics Learn Relative Strength Point & Figure Charting

The Spirit of Technical Analysis

Chart construction and layout

Region of Excess Return

Region of serious under-performance

Extreme volatility - Shortest time period

Analysis of trends

Triple top buy signal

Triple bottom sell signal

45 degree lines- Bullish

High performance bullish support lines Example 1-2

High performance bullish support lines Example 3-4

High performance bullish support lines Example 5-6

High performance bullish support lines Example 7-8

High performance bullish support lines Example 9-10

Support and resistance

Resistance below the bearish resistance line

Trading ranges

Channels

Major long-term trends Example 1-2

Major long-term trends Example 3-4

Major long-term trends Example 5

Major long-term uptrends Example 1-2

Major long-term uptrends Example 3-4

Major long-term uptrends Example 5

Major long-term down-trends

Natural trendlines

Major reversal patterns

Major bases

Breakouts Example 1-2

Breakouts Example 3-4

Breakouts Example 5-6

Breakouts Example 7

Some thoughts about how the market works

Theory of Runs

Some thoughts about portfolio management

Relative strength study - real time - uptrends and downtrend lists published by WCA in 1999

Learn Relative Strength Point & Figure Charting

Analysis of trends

Uptrends

This two-year uptrend has been characterized by a more or less consistent pattern of higher highs and higher lows. Stocks are usually not this consistent and will show more periods of correction.

Downtrends

From the peak at (A,8) the stock just started going down and fell for over 25 columns without a single high rising above a prior high. Lower lows and lower highs are the hallmark of a serious downtrend.

Signal patterns

By W. Clay Allen CFA

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