Prized for its accurate forecasting of price and market movements long before the advent of technical analysis, point and figure charting is now being rediscovered by traders. This practical primer first reviews the fundamentals of point and figure charting. From there it supplies traders, portfolio managers and individual investors with actual trading techniques for charting price movements in stocks, options and commodities, and using point and figure techniques in mutual fund selection.
Many investors tend to forget that the most basic force affecting securities prices is the law of supply and demand. Point and figure charting is a time–honored, proven method of tracking fluctuations in supply and demand and recognizing promising trends early enough to take advantage of them.
In this book, Thomas J. Dorsey shows you, step–by–step, how to create, maintain, and interpret your own point and figure charts. He explains how you can use your findings to track and forecast market prices and develop an overall investment strategy. Perhaps most importantly, he helps you develop confidence in the market and in your own ability to take decisive action at the appropriate time, rather than reacting belatedly to rapidly changing market conditions.
Point and Figure Charting isn′t just for brokers. It′s a simple, clear, straightforward presentation of the oldest and most completely tested method for technical analysis of stock prices. This classic method is both simple and accurate enough to enable every investor to become a technical analyst. With the help of this book, you will find yourself tracking not only individual stocks, but also market segments, commodities, mutual funds, and more. You will learn to use important market indicators, such as the NYSE Bullish Percent; make and use relative strength calculations; apply sector rotation; and trade options, commodities, and other financial instruments using point and figure charting.
No other book on technical analysis takes you so far, so fast. You will move beyond theory into actual trading techniques you can apply in specific markets to become a self–reliant investor. You will learn to plan your own investment strategies designed to outperform the market and produce returns on your investments that, up to now, you′ve only dreamed of.
If you′re tired of leaving your financial future in the hands of money managers who don′t seem to do much more than follow the herd from one fad investment to the next, here is your chance to take control of your investments with a logical, sensible approach built around the way the market actually functions.
Finally . . . a clear approach for managing your investments and understanding the markets
It′s not too late to take control of your own investments, to stop treating the market as an enigma, and to make technical analysis a practical reality in your investment program. With the methods in this book, you will find yourself investing with a new confidence and self–reliance that will be the envy of your fellow investors. And don′t be surprised if your broker offers you a job.
"Everyone who′s involved in financial markets must understand point and figure charting in order to get the full picture, whatever your view of technical analysis." Jim Rogers Author of Investment Biker
"Being in the right stock market sector at the right time and getting out at the right time is only one of many things you′ll learn from Tom Dorsey′s great book. Should be on the desk of everyone interested in the stock market, especially professionals." Michael Burke Editor, Investors Intelligence
"Tom Dorsey has once again demonstrated that technical analysis can co–exist with fundamental analysis. All too often Wall Street has overemphasized ′What to Buy.′ Now, using Tom′s charting techniques, the investor will have confidence in knowing ′When to Buy and Sell.′" Stephen T. Mitchell Managing Director, Alex Brown & Sons, Inc.
