TAILIEUCHUNG - Getting Started in Currency Trading Winning in Today's Forex Market_7

Tham khảo tài liệu 'getting started in currency trading winning in today's forex market_7', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Technical Analysis 125 Point and Figure Charts The modern point and figure P F chart was created in the late nineteenth century and is roughly 15 years older than the standard OHLC bar chart. This technique also called the three-box reversal method is probably the oldest Western method of charting prices still around today. Its roots date back into trading lore as it has been intimated that this method was successfully used by the legendary trader James R. Keene during the merger of . Steel in 1901. Mr. Keene was employed by Andrew Carnegie to distribute the company shares as Carnegie refused to take stock as payment for his equity interest in the company. Keene using point and figure charting and tape readings managed to promote the stock and get rid of Carnegie s sizeable stake without causing the price to crash. This simple method of charting has stood the test of time and requires less time to construct and maintain than the traditional bar chart. See Figure . The point and figure method derives its name from the fact that price is recorded using figures Xs and Os to represent a point hence the name Point and Figure. Charles Dow the original founder of the Wall Street Journal and the inventor of stock indexes was rumored to be a point and figure user. Indeed the practice of point and figure charting is alive and well today on the floor of all futures exchanges. The method s simplicity in identifying price trends and support and resistance levels as well as its ease of upkeep has allowed it to endure the test of time even in the age of web pages personal computers and the information explosion. The elements of the point and figure anatomy are shown later in Figure . FIGURE Point and Figure Chart 126 THE TOOLS OF THE TRADE FIGURE Anatomy of Point and Figure Columns Two user-defined variables are required to plot a point and figure chart the first of which is called the box size. This is the minimum grid increment that the price must move

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