Wyckoff Stock Market Techniques - Point and Figure Charts

Click Link To Learn More Wyckoff Stock Market Techniques http://wyckoffstockmarketinstitute.com/wyckoff-book/ Please subscribe to our channel to get notified when new videos are posted. Today, I'm going to discuss Point & Figure Charts. These little used, but extremely helpful charts, help Wyckoff investors and traders to identify objectives and when to sell stocks to realize maximum profits. Like many other things stocks need a cause to have an effect. This cause comes in the form of a sideways movement that is called a trading range. If the stock is preparing for an advance, the trading range is called accumulation. If the stock is ready to react, that trading range is called distribution. Like a building that needs a foundation, before construction begins, every stock needs a base that will support a rally or a reaction. It is uncanny how the width of the base translates to the height of the rally or depth of the reaction. A point and figure chart is a presentation of price. Volume is not included. It simply shows price changes by a pre-designated number. In most cases, including the example on the screen, the chart records one point changes in price, in either direction. Putting together a Point & Figure chart is relatively simple. The chart of American Tower, symbol AMT is used as an example of how to develop a point and figure chart. On a reaction, a dot is placed in a box that relates to the price of the stock. The dot is not entered until the price moves below that whole number. For example, in this case, AMT reacted to point A. Point A is at the $87 level. A dot cannot be placed at the $87 level until the price moves below $87. In this case AMT reacted to $86.83, which allows us to place a dot in the $87 box. AMT then rallied to point B. On a rally, as soon as the stock reaches a whole number, a dot can be placed in the associated box. At point B, AMT had rallied to $104.06. This allows placement of a dot in the $104 box. AMT reacted off point B. Dots were placed in the column directly to the right of point B. In this case, AMT reacted to just below $100 per share, rallied to $101 per share and reacted again to just below $97 per share. It rallied to $98 per share and reacted back to slightly below $97. Then it rallied again, back to $100 per share. Reacted to just under $99 per share and rallied to $101 per share. Again each time the price direction changes the dots are placed in the column to the right. Finally after several more up and down moves AMT reacted to point C. Point C is at the $84 level. The low price for that day was $83.07. Once a point and figure chart is established it can be used to identify a stock's potential. To learn more about this excellent Wyckoff tool and how it can help you increase your trading success, check out our new book entitled Wyckoff Strategies & Techniques. It can help make you a better trader. Click Link To Learn More Wyckoff Stock Market Techniques http://wyckoffstockmarketinstitute.com/wyckoff-book/

Comments

1. Kindly upload more video on Wyckoff trading.