Point and Figure revisited

21st Century Point and Figure: New and Advanced Techniques for Using Point and Figure Charts, by Jeremy Du Plessis.

Published by Harriman House.

Jeremy Du Plessis, head of technical analysis and product development at software provider, Updata, is probably the leading expert on Point and Figure charts. His earlier book, “The Definitive Guide to Point and Figure” (also Harriman House), is the premier resource for anyone wishing to learn about this underused charting technique.

Point and Figure (P&F) remains a somewhat specialised technique perhaps because the construction and interpretation of the charts does demand some time and effort to master. Financial institutions, for example, providing technical research perhaps feel that traditional bar and candlestick charts can be more easily interpreted by their clients and so the style and content of their research tends to reflect this.

Du Plessis’s books should go some way to correcting this impression as his examples clearly illustrate; one of the key strengths of P&F charts is that they generate such clear and unambiguous trading signals. However, the focus of this latest book is on more advanced strategies and assumes that the reader is probably already a user of P&F charts. Included are topics such as box size analysis and determination, moving averages, indicator overlays, using volume, relative strength, market breadth and more. These are subjects that complement and enhance the existing literature on P&F chart analysis.

As with the earlier book the text and charts are immaculately presented with numerous examples across all asset classes. They also benefit from Du Plessis’s clear and unfussy style in explaining the various techniques and trade set-ups. This is a publication of real value and should be required reading for all technical traders, investors and analysts who are serious about expanding their understanding of technical analysis.

Available from Harriman House >>

P&F