If you have not seen the first video on the origins of Point and Figure Charts, I suggest you head over and watch the video, it is just a few minutes long.
This video covers how sell signals are created on a point and figure chart. Buy signals and sell signals on point and figure charts are the building blocks behind some of the greatest investment discoveries. It will be well worth your time to see exactly how sell signals are created on these charts. In this example of a sell signal, we used the current point and figure chart for Walter Energy (ticker symbol WLT). If you would like us to analyze an investment for you, feel free to contact us.
Have you seen the video on Point and Figure Buy Signals?
If not, check out that video, it’s just a few minutes long.
None of the names mentioned in this video are (or have been) specific recommendations of Mullooly Asset Management.
If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.
If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.
At one point in the video, I mentioned “there are two questions to ask when charting by hand.”
Unfortunately, I gave you ONE of the questions! The two questions to ask when charting were established by Charles Dow, who created point and figure (then called “figuring”) back in the 1800’s, are:
1. Whatever column the chart currently is in (a column of X’s going UP, or a column of O’s going down), did the chart move enough to put another X or O in that column?
(if yes: add the X or O and move to the next chart, this one is done for the day)
2. If you did not add an X or an O to this chart, did the chart (the price) REVERSE by more than three boxes? (if yes, create a new column in the new direction).
I would also add the following: Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.
All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.
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