About the Author Preface Introduction Which Instruments Work Best with Point and Figure? Point and Figure Terminology Structure of this Book Technical Analysis Software and Data Acknowledgements and Thanks 1. Quick Refresher on Point and Figure 2. 21st Century Construction Introduction 20th Century Box Sizes 21st Century Box Sizes Box Sizes based on Volatility Box Size based on Standard Deviation Box size based on Average True Range (ATR) Box Sizes Based On Other Formulas 21st Century Construction Methods Low/High Method Open/high/low/close method Summary of 21st Century Construction Methods 3. Moving averages on Point and Figure Charts Introduction Constructing a Moving Average on a Point and Figure chart Moving Averages and the Last Column What are Moving Averages Used For? How to use moving averages on Point and Figure charts What constitutes a cross of a moving average? Using Moving averages on 3-box reversal charts Method 1 - Using the position of moving average with Point and Figure signals Method 2 - Using the position of the column midpoint and the moving average Method 3 - Using the position of the column midpoint and moving average combined with Point and Figure signals Using Moving averages on 1-box reversal charts Method 1 - Using the moving average in conjunction with Point and Figure signals Method 2 - Using the position of the column midpoint and the moving average Method 3 - Using the position of the column midpoint and moving average combined with Point and Figure signals Using Two Moving Averages on Point and Figure Long / Short Using Moving averages on other box reversal charts Choosing Moving Average Lengths Close, High/Low, Low/High or Ohlc Construction Moving Average Calculations Moving Average Chart Examples 3-Box Reversal Adding Moving Average Bands 1-Box Reversal The 4th Method Summary of Moving Averages on Point and Figure charts 4. Using Other Tools on Point and Figure Charts Introduction Donchian Channels Obtaining Buy and Sell Signals using Donchian Channels Bollinger Bands Obtaining Buy and Sell Signals using Bollinger Bands Parabolic Stop and Reverse (SAR) Using the Parabolic with 3-box reversal charts Method 1 - Using the Switch of the Parabolic as the Signal Method 2 - Using the Parabolic switch as the alert to take the next Point and Figure signal Method 3 - Using the midpoint of the Column Crossing the Parabolic Using the Parabolic with 1-box reversal charts Method 1 - Using the Switch of the Parabolic as the Signal Method 2 - Using the Parabolic switch as the alert to take the next Point and Figure signal Method 3 - Using the midpoint of the Column Crossing the Parabolic Other ways of using the Parabolic Parabolic Acceleration Factor Summary 5. Indicators of Point and Figure Charts Introduction Understanding Divergence Displaying Indicators with Point and Figure Charts Overbought/Oversold Oscillator (OBOS) Moving Average Convergence/Divergence (MACD) Relative Strength Index (RSI) Directional Movement Indexia Market Tracker Summary 6. Volume on Point and Figure charts Introduction Column Volume On-Balance Volume (OBV) Volume-Price Trend (VPT) Volume at Price A Note on Price Level Activity Summary 7. New Point and Figure Based Tools and Indicators Introduction Point & Figure Trend Oscillator Point and Figure's Gift to Time-based Charts Point & Figure Trend Oscillator for Time-based Charts 45 Trend Lines on Time-based Charts Point and Figure Reversal Alert Summary 8. Advanced Analysis of Relative Strength & Spreads Relative Strength A Note About Relative Strength Scaling Using Advanced Techniques on Relative Strength Spreads Using Advanced Techniques on Spread Summary 9. 21st Century Market Breadth Analysing Percentage Market Breadth Charts 20th Century Market Breadth 21st Century Market Breadth X-Column Percent Bullish Trend Percent Using Breadth Indicators together Adjusting Your Time Horizon Summary 10. Conclusion 11. References and Further Reading 12. Index
Jeremy du Plessis, CMT, FSTA, trained as an automotive engineer, then an economist, but gave them both up to become a Technical Analyst. In 1983 he founded Indexia Research and pioneered the development of PC-based technical analysis software with the Indexia range of technical analysis systems. During the 1980s he developed a number of technical tools and indicators under the banner of Indexia, such as the Indexia Market Tracker and Indexia moving averages, which are still used in software to this day. He is an expert on Point and Figure charts, and the Indexia software was the first PC-based system to draw them correctly and clearly in the early 1980s. He lectures the Point and Figure module for the Society of Technical Analysts and sets the Point and Figure syllabus for the International Federation of Technical Analysts. He has taught Technical Analysis, and in particular Point and Figure, to thousands of professional traders and investors over the last 30 years. In 2001, after running Indexia Research for nearly 20 years, he agreed to merge the company with Updata Ltd, where he is now head of Technical Analysis and Product Development, and the designer of the Updata PC and smartphone technical analysis software. He is a Fellow of the Society of Technical Analysts (FSTA) in the UK, and a member of the American Market Technicians Association (MTA) as well as the American Association of Professional Technical Analysts (AAPTA). He is a holder of the Chartered Market Technician (CMT) designation awarded by the MTA. Jeremy is also the author of The Definitive Guide to Point and Figure.
"Mr du Plessis has taken traditional Point and Figure charts and successfully integrated key momentum indicators, volume and other commonly used tools, bringing Point and Figure analysis into the 21st century. As a market technician who has used Point and Figure for 20 years, I strongly believe that there is no better time to educate yourself on these updated approaches, first to better navigate the 'noise' that is bound to persist in all types of markets, and second to be able to effectively expand your horizons of market observation across the globe. With such high reliability, and a uniquely objective and quantifiable nature, there is no charting technique like Point and Figure, and this book can guide you to mastery of it." - Craig Johnson, CFA, CMT / Senior Technical Market Strategist, Piper Jaffray / President, Market Technicians Association; "Du Plessis brings Point and Figure into the modern era with new insights and innovation to enhance this time-proven technique. This work is invaluable to the serious chartist and highly recommended for the professional tasked with forecasting price targets or establishing risk management strategy. It pushes the envelope for Point and Figure enthusiasts to help them use their skill in new ways." - Gordon Scott, Managing Director, CMT Program, Market Technicians Association; "Jeremy du Plessis has been teaching Point and Figure charting on the Society of Technical Analysts (STA) Diploma Courses for nearly a quarter of a century. In 2005 he decided to write The Definite Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method, which has been on the STA's reading list ever since. His new book, 21st Century Point and Figure, takes Point and Figure charting to a whole new level. It expands on his first book and includes invaluable new techniques, such as advanced analysis of relative strength and spreads, market breadth and indicators on Point and Figure charts, to name but a few. The STA is pleased to add 21st Century Point and Figure to its Diploma Course reading list."- Axel Rudolph, Chairman of the Society of Technical Analysts; "Once again Jeremy du Plessis has pushed the boundaries of Point and Figure charting by applying moving averages and Bollinger Bands in unique ways to the chart. His application of time based indicators makes the Point and Figure chart even more relevant to today's traders and investors." - Bruce M. Kamich, CMT, Adjunct Professor of Finance at Baruch College / Past President of the Market Technicians Association and the Market Technicians Association Educational Foundation; "An expert in Point and Figure technique, Mr. du Plessis is well qualified to take Point and Figure into the 21st century. Although it touches on the background of Point and Figure, this is a more advanced book, full of practical information. Picking up where The Definitive Guide to Point and Figure left off, Mr du Plessis explains a variety innovative techniques that truly do bring Point and Figure into the modern age." -Ken Tower, CMT; "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." -Jim Biss, The Technical Analyst