Welcome: |
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Lesson 1: |
Wrap Up |
Lesson 1 is dedicated
to familiarizing you with Point and Figure charts, basic charting
concepts and the three box reversal method.
It is important that you understand
fully the workings and rules of three box reversals, the box
sizes and the flow chart of investing. Without a sound foundation
of this information it will be difficult to understand the following
lessons and the more in-depth features of Point and Figure. The
change of box size is always something that takes a little getting
used to and it is highly advisable that you continue to do your
own hand charting even after completing this University. The
better you familiarize yourself with three box reversals the
more comfortable you will be with your skills in PnF charting.
Another neat thing to do is pull
up a chart on the DWA database, one that has made a significant
move during the trading day, and see what the chart looked like
before the major move. This way you can get a feel of the chart
prior to large swings either up or down - see what the chart
was telling you ahead of time. I found this to be extremely helpful
and a fun exercise to work on daily. Getting the "feel"
of the charts will build your confidence as well. Use the DWA
database to print charts to keep by hand.
In time you will be able to look
at a chart with highs and lows of the day and even during the trade
day, and determine the direction of the chart. This becomes almost
intuitive in time. If you still find these concepts confusing, we encourage you to
re-read Chapter Two of "Point & Figure Charting, 3rd Edition" by Thomas Dorsey.
Part 1: |
Attributes of a Chart |
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Part 2: |
Chart Basics |
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Attributes
Box Scales
Dates and date lines
Numbers and letters for the months |
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Three box reversal
Box scale tables
Flow chart of investing
Examples of how to chart |
We will now test you to find
your comprehension of the subjects discussed in Lesson 1.
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