The Definitive Guide to Point and Figure(BONUS ICWR Forex Trading Strategy)
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A Comprehensive Guide to the Theory and Practical Use of the 1-Box, 3-Box, 5-Box and Other Variations of the Point and Figure Charting Method Jeremy du Plessis, CMT FSTA, has produced the most complete work on Point & Figure available. The subject is covered from how it was invented on Wall Street right through to the application of some of the latest techniques.
Areas such as On Balance Volume, Bollinger Bands, Market Breadth Analysis, Parabolic Stops are covered as well as sections on Optimisation and Scanning. Box construction, trend lines and Count targets are covered in depth.
The 3 and 5 Box reversal methods are explained along with the powerful 1 Box method which has virtually been lost for decades. No element of Point and Figure construction is overlooked. The book also contains some truly groundbreaking work on risk/reward ratios too.
The Definitive Guide to Point & Figure gives you hundreds of practical chart examples and steps you through full analyses of a number of charts of world indices and international stocks with further examples of currency and commodity charts. Quite simply, it is the most complete reference on the subject ever produced and a ‘must read’ for any serious investor, trader or fund manager.
Editorial Reviews
Review
"Rarely does a book live up to its claim of being the 'definitive' guide to something. Jeremy du Plessis' new book lives up that claim and more. It's almost impossible to imagine a more definitive treatment of point and figure charting. The author pays homage to its early development and the pioneers who first wrote about it. He gives extensive coverage to the original 1-point reversal method before moving on to the more modern methods.
The subject is examined from every conceivable angle. I'm not aware of anyone who has even attempted to combine p&f charting with so many modern technical indicators. I expect that du Plessis' book will not only become the definitive book on point and figure, but will also become a classic in the field of technical analysis.
" John Murphy CMT, Author of Technical Analysis of the Financial Markets "A superbly comprehensive book on this powerful technique from one of the world's leading experts on the subject. A must read for all serious technicians and investors.
" Adam Sorab, Chairman - UK Society of Technical Analysts "If you had to go to a desert island and were only allowed to take one investment tool with you, then it should be the Point and Figure chart. If you were also allowed to take only one book, other than the Bible and the works of Shakespeare, then make it this Definitive Guide by Jeremy du Plessis.
The whole subject is covered from its early historical beginnings as a way of noting the noise of the ticker tape in the days of Charles Dow, then called the Book method, through its evolution to become the 'Voice of the market'. How to construct and use the charts and their unequivocally clear buy and sell signals, revelation of trend, reversal, support and resistance levels are all revealed and well illustrated. The subject is explained as an evidence gathering procedure, that leads to a successful trading method, with accurate entry, stop loss, and targets.
It is also brought right up to date with with some new thinking involving indicators such as OBV, Bollinger bands, and parabolic stop and reverse signals. You will have such a great time working through it on your desert island that you might not want to come home.
" Robin Griffiths FSTA, Head of Asset Allocation, Rathbone Investment Management "Even though point and figure charting is 120 years old, Mr. du Plessis has brought a truly fresh and authoritative approach to a subject that is central to technical analysis. Bravo!" Bruce M. Kamich, CMT, Adjunct Professor of Finance at Baruch College, Past President of the Market Technicians Association "Not only does Mr. du Plessis plumb the history and elucidate the present state of point and figure analysis, he looks at a craft many regard as passe and sees a vibrant future.
This eye-opener is a welcome addition to the literature of technical analysis." John Bollinger, CFA, CMT, President, Bollinger Capital Management
About the Author
Jeremy 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, 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 20 years. In 2001, after running Indexia Research for nearly 20 years, he agreed to merge the company with Updata plc, where he is now Head of Technical Analysis and the designer of the Updata Technical Analyst 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). He is a holder of the Chartered Market Technician (CMT) designation awarded by the MTA.
- 450 pages
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Publisher: Harriman House
- Language: English
- ISBN-10: 1897597630
- ISBN-13: 978-1897597637
feedback:
learly this writer knows his subject. The title says definitive and that's what it is. In my opinion this is a seminal work on the subject.
The structure is generally good. It starts with an introduction to technical analysis which I guess is too short and too basic and could have been left out. The beef starts with the chapter on the history of Point & Figure charts. The chapter is enlightening and informative. Next is characteristics and construction which explains what makes a PF chart and how it is constructed. I was surprised at how many different methods there are. The next chapter is called understanding PF and details patterns and how they are created.
He concentrates on how and why there is a pattern which is good. It is also the first time I have seen the old one point reversal charts and modern 3 point charts reconciled. There is a lucid description of the way to apply trend lines and what they mean. A new technique using 'internal lines' is very useful. The chapters just get better and better. There is a whole chapter on targets that has for the first time explained this part of PF to me better than ever before. There is some ground-breaking detail on risk and reward ratios. I am already using these.
He does a full step-by-step analysis of an English FT index as well as the Nasdaq Composite. It doesn't stop there. A chapter on the use of moving averages, John Bollinger's bands and Wilder's parabolic on PF charts is clearly a new area. He covers what he calls market breadth and Bullish Percent in meticulous detail. Every step of the way he describes exactly how everything is calculated.
It is an expensive book but its hardback and its in color. That's something you don't ever see. There are lots example charts. The contents are detailed and the index is very good.
I like the writing style. I highly recommend it
Bob Kutchinsky
ICWR Forex Trading Strategy
ICWR stands for Impulsive/Corrective Wave Retracement. The ICWR forex strategy is a list of conditions that traders use to determine entry and exit points in trading the forex market.
The ICWR forex strategy is based on a combination of the Elliott Wave Theory and Fibonacci ratios. Traders have found that corrective waves have a inclination to retrace the preceding impulsive waves by a Fibonacci ratio.
So what are corrective waves? Corrective waves are short-term corrections that move against the long-term market trend. The major waves in in alignment with the long-term market are called impulsive waves. Bring up a chart of a major currency (say the GBP/USD) with the time frame set on daily and you will easily see the long-term trend, along with several corrective waves.
The most frequent Fibonacci ratios observed in the ICWR forex strategy are 25%, 38%, 50%, 61% and 75%.
Most traders use the ICWR forex strategy with an existing entry strategy to help refine their exit strategy to get out the maximum profit possible out of the trade. In fact many traders have found that managing a trade and determining the exit point is more important than choosing an entry point and direction to trade in.
The ICWR forex strategy is very easy to use. Simply bring up a chart of an interval you wish to trade, find the preceding impulsive wave (in the direction of the long-term trend) and compute the Fibonacci ratios. Now record the Fibonacci ratios on your chart. For example if the preceding impulsive wave UP was 100 pips, for the Fibonacci ratio of 25% you will place a line 25 pips below the high of the impulsive wave. Most charting packages come with a Fibonacci tool built in, calculating the ratios and drawing in lines for you.
These Fibonacci ratios can then be used in a number of ways:
- move your stop loss with every impulsive wave in your favor to maximize profit and minimize risk (the 75% ratio is usually used for this)
- determine when the corrective wave is likely to conclude in order to determine good entry points.
Traders often tend to despair when their trade is in profit and it starts to move against them. By using the ICWR forex strategy you will be ready to ride out the corrective waves in order to get out the maximum profit from your trades.
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