CHANGE LANGUAGE | Home > Doc > Learn Relative Strength Point & Figure Charting > Major long-term trends - example 3 - 4

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

Major long-term trends

Example 3 - 4

example 3

Trendlines that get steeper and steeper are suggesting a blow-off. These situations are usually best sold into the strength since the top will almost certainly give little warning.
The rule of nine new high columns can be used to estimate the end of the rise.

example 4

Relative strength ranking systems will usually rank a stock like this in the very highest ranks at the very top of the move and even after the stock has turned
down. The extreme nature of the upmove will still generate very
high relative strength ranks well after the top is in. In my opinion, it is far better to use relative strength trend following techniques because of this inherent weakness of longterm relative strength ranking systems.

By W. Clay Allen CFA

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