Point & Figure Breakouts

Point & Figure charts reflect the law of supply and demand. When demand overwhelms supply, more buyers than sellers, a Bullish Price Breakout will occur on the P&F charts. Conversely, when supply overwhelms demand, a Bearish Price Breakout will occur. Market Edge gives you all of the significant Point & Figure chart breakouts on a daily basis.

A Point & Figure chart consists of alternating columns of X's and O's. X's represent increasing prices while O's represent decreasing prices. Unlike Bar charts, Point & Figure charts don't take time into consideration, only price. The significance of Point & Figure chart breakouts lies in identifying price trends and reversals.

Market Edge uses the Chartcraft standard box size and a three point reversal when constructing Point & Figure charts. Under this method, the box size varies at different price levels: Between $5 - $20, one box = $ .50; between $20 - $100, one box = $1.00 and between $100 - $500, one box = $2.00. The most profitable Point & Figure trading formations are the Double Top-Bull Pattern/Double Bottom-Bear Pattern formations, Triple Top/Triple Bottom formations and Quadruple Top/Quadruple Bottom formations.

Double Top Bullish Signal Formation:

	      B 
	O X   X 
	O X O X   BULLISH SIGNAL     A Double Top formation and the most 
	O X O X   FORMATION          recent X column made a higher bottom than 
	O X O                        the previous O column.
	O       

Double Bottom Bearish Signal Formation:

	X                            
	X O X                            
	X O X O  BEARISH SIGNAL      A Double Bottom and the most recent X 
	X O X O  FORMATION:          column made a lower top than the
	  O   O                      previous X column.
	      S                                                        

Triple Top Formation:

	        B  TRIPLE TOP        The most recent column is an X column.
	X O X O X  FORMATION         This X column exceeds the previous two X
	X O X O X                    columns.
	X O X O X 
	X         

Triple Bottom Formation:

 
	O X        TRIPLE BOTTOM     The most recent column is an O column.
	O X O X    FORMATION         This O column exceeds the previous two O
	O X O X O                    columns.
	O   O X O 
	        S 

Point & Figure Early Alerts

Point & Figure charts reflect the law of supply and demand. When demand overwhelms supply, more buyers than sellers, a Bullish Price Breakout will occur on the P&F charts. Conversely, when supply overwhelms demand, a Bearish Price Breakout will occur. The significance of Point & Figure chart patterns lies in identifying price trends and reversals. The uniqueness of the P&F Breakout Alert is that it isolates stocks that are IN THE PROCESS OF FORMING any of the above formations and identifies at what price the stock must reach in order for an actual BREAKOUT to occur on the P&F charts. On a daily basis, Market Edge identifies these patterns enabling traders the opportunity to play the BREAKOUT as it occurs on an intraday basis.

A Point & Figure chart consists of alternating columns of X's and O's. X's represent increasing prices while O's represent decreasing prices. Unlike Bar charts, Point & Figure charts don't take time into consideration, only price. The most profitable Point & Figure trading formations are the Double Top (2T)-Bull Pattern /Double Bottom (2B)-Bear Pattern formations, Triple Top (3T)/Triple Bottom (3B) formations and Quadruple Top (4T)/Quadruple Bottom (4B) formations.

Market Edge uses the Chartcraft standard box size and a three point reversal when constructing Point & Figure charts. Under this method, the box size varies at different price levels: Between $5 - $20, one box = $ .50; between $20 - $100, one box = $1.00 and between $100 - $500, one box = $2.00.