Core Point and Figure Chart Patterns .pdf - Content
Charles Dow invented the basics of “supply and demand” charting, point and figure, in the late 1800’s. It’s been used ever since. Charts effectively show “historical perspectives” best, and chartists are always watching to see what leading indicators will predict “what’s next.”
Using point and figure as a methodology for seeing prior supply and demand also helps the chartist eliminate “noise.” “Noise” is what we call “too much information, and too many facts” that are put in front of the average investor. Many option traders wrongly believe that the more charting and detailed information (bells and whistles) they have to trade with, the better. This is dangerously wrong.