APPROVED METHOD OF ASSEMBLING AND MAINTAINING PROPER DATA
The ticker tape
Source of all data
Daily full figure fluctuations available
Method ideal for those at distant points
Application of the data
How to prepare and collate the needed data
Proper graph paper helpful
Arrange charts orderly
How to select the issues to record
Clarifying the use of the symbols
Moving to next vertical column
Use of symbol "0"
One cardinal principle
Gaps are not recorded
How the gap occurs
Plotting the gap
The one point chart
The three point and five point charts
Condensing the one point moves
Other helpful aids
The method substitutes for tape reading
Trend outline and geometrical charts
The proper issues to chart
Commodity price movements
We have made clear to you the fact that this time tried Method depends for its accuracy upon a radical and entirely different principle. Price changes, that is the fluctuations in the price of a stock, are more important as the basis upon which to judge its technical condition than are either volume or price range. Price range is the zone between the high and the low which the stock registers each day. A carefully compiled transcription of these price changes will point the way to more consistent and greater profits, with less guesswork and more confidence in your market commitments.
Before we begin to make the chart, it is most important that we obtain the exact price changes in the order in which they occur, and that we be certain of the source of our data. It is vital and most important to the proper application of this Method that we obtain all of the price changes and plot them all. The most vital signals given by this Method are those occurring in the trading ranges, the congestion areas, either at the termination of moves at bottoms and tops, or in the consolidation areas, during the advance or decline.
A trading range is the zone in which a stock backs and fills, i.e. fluctuates above the level of support where sufficient buying is encountered to absorb all offerings and the resistance level above where the demand is unable to absorb the supply. A trading range is sometimes called a "line movement" especially when it is used to describe this action on the part of a market index. In the latter case it shows the base, that level at which sufficient capital is available and desirous of being exchanged for stock, and the resistance level above where the holders of stock desire to exchange their equities for cash.
It, therefore, becomes evident and is of vital importance that all fluctuations be obtained from reliable sources and that they be carefully recorded in the order in which they occur.
THE TICKER TAPE
Many years ago, Stock Exchange authorities recognized the importance of creating and preserving actual records of all transactions as they occur on the floor of the Stock Exchange. It was then that the ticker tape, as we know it today, was conceived. In the beginning, the records were crude, but as the market broadened in the number of corporate issues traded and this country grew in wealth and importance, the ticker became more highly developed, so that now it is capable of high speed, and the price fluctuations are printed almost as quickly as they occur. It is only on rare occasions that the new, high speed ticker lags, a few minutes at most, behind the actual transactions.
SOURCE OF ALL DATA
The ticker tape is the official Stock Exchange record of all transactions, and it automatically becomes the source of all data for this or any other method of anticipating stock price movements. Whether you are guided by vertical line bar charts, by moving averages, by statistical information, business conditions, or by the actual technical condition of the stock itself, the source of all information as to the price, the range, the daily closing, daily, weekly, monthly, or yearly, high and low prices, or actual price fluctuations, the ticker tape is the original source of all information. All errors which occur in the recording of the transactions effected on the floor of the New York Stock Exchange are quickly corrected on the tape, sometimes within a minute or two after the error occurs. The ticker tape, therefore, is considered the very best source from which to get the price fluctuations so vitally necessary to the use of the Point and Figure Method.
DAILY FULL FIGURE FLUCTUATIONS AVAILABLE
It is not necessary for you to be in your broker's office in order to procure all of the full figure fluctuations. The publishers of this book provide that service, and it is published daily. In order to insure the accuracy of the information, they have a trained and skilled staff of men who read closely all transactions on the ticker tape.
Each morning, the previous day's changes are carefully checked against data supplied by the Stock Exchange blue sheet and the three most reliable daily financial publications. Errors, if any occur, are carefully noted by the service on the succeeding day in a special errata column.
In the less volatile issues it is possible to approximate the full figure changes from the stock market quotations as published in your daily newspaper. Price fluctuations compiled from newspaper openings, highs, lows, and closes, are not nearly as dependable as the information garnered directly from the tape. In one case, you are assured of all full figure fluctuations, while in the other, a great number of full point changes may be missed. This is vital and important because as you proceed with your work, you will soon realize that complete campaigns of accumulation and distribution can be effectuated in one, two or three market days. As a general rule, Point and Figure Charts compiled from newspaper quotations will rarely show a complete fulcrum, catapult or semi-catapult formation. These formations will develop when you plot all of the full figure fluctuations. Just as a house cannot be built unless a foundation or base is first laid, so a stock cannot rally to any degree, as a general rule, without first creating a congestion area or base from which to advance. Therefore, you must realize that in order to have fullest advantage from your knowledge of the Point and Figure Method it is absolutely essential that you record all of the full figure fluctuations.
METHOD IDEAL FOR THOSE AT DISTANT POINTS
For students and observers at distant points, this Method offers a splendid opportunity for observation and study. Even though your "Full Figure Daily Data" may be three or four days late in arriving, your charts will always tell the story in ample time for you to have fullest advantage of moves as they develop. If you are a great distance from New York City and cannot get the accurate full figure changes, we suggest the following procedure. Obtain from your brokerage office, customers man or daily newspaper, your tentative full figure fluctuations, and enter them on your charts by making pencil dots in the squares representing the temporary and estimated changes. A day or two later when you receive your accurate full figure changes, carry forward your chart in ink. Thus, you will have the opportunity of being right up to the minute on the few stocks in which you may have a commitment, and when authentic figures arrive, you are assured of having the correct changes for inking in your graphic records for future reference and study.
APPLICATION OF THE DATA
After you are certain that you are obtaining all of the authentic full figure fluctuations, it is well for you to form the habit of recording the changes each day. It is best to maintain charts of at least fifty, and if possible, one hundred active stocks, as well as of the following averages, namely, the Dow Jones Industrials, the Dow Jones Rails, the Dow Jones Utilities and the New York Herald Tribune Index of 100 Stocks.
A one half point chart compiled from figures representing the half hourly running line of the Dow Jones Industrial Averages is also very informative of the nearby minor swings. Elsewhere in the book, we supply full detailed explanations of this half point, half hourly running line index.
For the sake of emphasis and clarity and in order to give the student a proper start, we describe, hereunder, the different types of charts which may be built up from the basic data, namely, the one point figure changes.
HOW TO PREPARE AND COLLATE THE NEEDED DATA
It is of vital importance that you keep all the needed data in a uniform, neat, and compact arrangement. The authors have devoted serious thought to this problem and the publishers have designed a series of special charting papers which are ideal for the purpose.
PROPER GRAPH PAPER HELPFUL
We recommend and use, exclusively, "Ideal" charting sheets #5001, printed on white paper, for our one point charts; #5003, printed on buff paper, for our three point charts; and #5005, printed on blue tinted paper for our five point charts. No. 5001.5, our half point paper, is especially recommended for fractional Point and Figure Charts. Nos. 5001, 5003, and 5005, are printed on good quality rag stock, 8" x 11, and are perforated for the conventional three-ring binder. These sheets are convenient to inspect, easy to remove, and ideal for the purpose of study and comparison. The ruling, especially designed, presents a simple arrangement for the digit, cyphers and full figure fives.
The sheet is so laid out that it may be read at a glance with the minimum probability of error. The price level is quickly realized, so that in going through your binders of charts, your attention can be concentrated on a study of technical conditions rather than on irrelevant details.
All of the charts reproduced in this book were drafted on these special "Ideal" charting sheets. The sheets are printed in a special color of ink which permits you to make your charts in pencil or in ink. When using pencil, the special color of the background graph lines permits the pattern to stand out in contrast to that background, even though you use a hard #3 pencil, which permits the plotting to be made without smudging, as is sometimes the case when a softer pencil is used.
As you progress with your work, you will soon be able to keep a graphic record of the movements of 100 stocks and five averages within the one half hour period.
ARRANGE CHARTS ORDERLY
The charts kept in your loose leaf binder should be segregated into one, three, and five point groups. Since the sheets are printed on different colored paper stock, one may easily differentiate them and quickly select the desired chart. The arrangements within the binder may be altered in accordance with your personal preference. We have found it more convenient to group the charts in alphabetical order according to the name of the stock. In this way, comparisons and daily changes are made quickly and easily.
One need not feel that the pressure of other affairs will prevent one from mastering this Method. Primary records, the one and three point charts, can be kept and maintained by any clerk or stenographer. Any intelligent assistant, after a little preliminary study of the principles of this Method, can keep all the needed data and pass on the finished work for study and analysis.
HOW TO SELECT THE ISSUES TO RECORD
In selecting your group of stocks, it is well to include a minimum of fifty of the most actively traded issues. Whether or not you intend to trade in any or all of these stocks is of no consequence. In addition to the individual issues which it is important for you to keep, it is wise to record the movements of at least three or four of the important popular averages. We suggest the Dow Jones 30 Industrials, the Dow Jones 20 Rails, the Dow Jones 20 Utilities and the New York Herald Tribune Averages. The Dow Jones Averages are shown and quoted wherever American stocks are traded in. The Herald Tribune Average is a weighted index of 100 stocks and a better, truer, and more ideal cross section of the market as a whole. It is less volatile and more dependable due to the fact that it is not easily manipulated.
In addition to the four indexes suggested above, your authors keep and observe a one half point chart of the Dow Jones 30 Industrials, calculated on a half hourly interval. The running line half point half hourly index is a very helpful aid in determining the short swing trends and their terminations. While at first glance it may appear that the necessary data herein before outlined will cause an insurmountable amount of work, nevertheless, we want to call your attention to the important fact that the greatest losses in the stock market were occasioned by hasty judgment, want of incentives, and lack of knowledge of actual market action.
Investment and trading is a serious matter. If you desire to succeed and take profits from the stock market, you must expect to work and study. The work is interesting, the necessary materials inexpensive, and the compensation far in excess of the value of the effort and time consumed.
If you want to have the greatest benefit from your knowledge of this time tried Method, we urge you, once more, to keep and maintain the one point moves in 100 stocks and five averages and the three point moves for the same group. Five point charts, which were mentioned before, are not absolutely essential. They are helpful and can be used for the important indices in order to aid in judging the main trend, and as condensation charts for the more volatile issues.
CLARIFYING THE USE OF THE SYMBOLS
Recording these price movements, as we have already explained, is done through the use of three simple symbols, "X," "5," and "0." The symbol "X," stands for any full figure which does not include a five or a cypher. Therefore, the symbol "X" may stand for the digits one to four, six to nine, eleven to fourteen, sixteen to nineteen, and so forth and so on. The symbol "5" represents all the multiples of five, such as five, fifteen, twenty-five, thirty-five, etc. Note here, that the figure "5" is used only where the figure ends in five and not when it ends in zero. The symbol "0" is used to represent all multiples of ten in the progression of the price movement, 10, 20, 30, 40, 50, 60, 70, etc. Examine, now, one or more of the charts included in this book in order to get a better and clearer understanding of the use of these symbols. Charts show in clear and simple manner how to use the "X," the "5," and the "0," in their proper places in the price progression and the pattern formation which it creates. Examine Figure 4.1, headed "XYZ: one point chart." Note how we have illustrated the use of all three of the symbols. The first and lowest "X" represents the full figure 34. The first figure, "5," immediately above the first "X," represents the full figure 35 and indicates a progression in an upward direction from 34, to 35, as the stock moves upward. The "X" above the first single figure "5" stands for 36. This shows a move of two points from full figure 34, to full figure 36, or a move to 36 7/8, which would be the fullest extent of an upward move represented by an "X" in the 36 square. The second full figure "5," indicated in the next right-hand column, again represents the price progression and a reversal of the former trend.
MOVING TO NEXT VERTICAL COLUMN
Note, here, one of the most important principles in plotting the price movements by the Point and Figure Method. When the trend direction of a stock changes and the required square is already occupied by a symbol, it is necessary to move over to the next adjacent right-hand column. This is very important and one of the principal stumbling blocks which may give you trouble if you do not thoroughly understand it. The chart of "XYZ" at this point indicates a move in a downward direction, from the previous 36 full figure or 36 and a fraction, to the full figure 35 or 34 and fractions above the flat full figure 34.
After plotting the symbol in the 35 square, the trend again changes, and the price movement progresses in an upward direction. The next full figure required is a 36. Since the 36 square is open, we may plot this by recording our "X" just above the "35" most recently recorded. The move then continues in an upward direction registering 37 and 38, before a reversal takes place. Thereafter, we are required to indicate a downward move to 37 or fractionally lower, and since the 37 square in the column is already occupied, we are required to move over to the first right-hand column. Again the trend changes. Now we require a 38 indication, and the symbol "X" is placed in the square just above the 37 most recently recorded.
USE OF SYMBOL "0"
The move continues upward, 39, and full figure 40, is registered. Here we have the first opportunity of using the symbol zero. "0," then, is placed in the square above the 39, on the 40 horizontal line. Thereafter, a down move to full figure 39 is recorded and we find it necessary to move over to the next right-hand column, because the 39 square is already occupied. The stock then rallies to 40, and we plot the 40 above the 39 already recorded. A sharp down move follows, and the stock registers full figure 35, before a change in trend takes place. This requires symbols to be placed in the 39, 38, 37, 36, and 35 squares. Since the 39 square is already occupied, we move over one vertical column to the right and indicate the down move to full figure 35. The stock then rallies to 39, requiring symbols in the 36, 37, 38, and 39 squares in the next adjacent right-hand column. Now a one point reversal is recorded, requiring us to move over to the next adjacent vertical right-hand column where we plot an "X" in the 38 square. The stock then rallies sharply, making full figure 44, and we proceed with our recording, placing an "x" in the 39, "0" in the 40 square, "X" in 41, 42, 43, and 44 squares. Now a reversal takes place, and the stock sells off making the full figure 41. Again we are required to move over to the next right-hand column in order that we may record our "X" in the square for 44, and we carry to 43, 42, and 41, terminating the move as indicated. In order to make it clear for you, we have designated the direction of the move by showing a black line superimposed over our symbols on this illustration. Note that we have used the symbol "X" to indicate the prices 34, 36, 37, 38, 39, 41, 42, 43, and 44. The symbol "5" indicates the price 35, and the symbol "0" indicates the price 40, in recording the full figure changes.
When we commence to plot the movement of a stock with the full figure 34, no change is made until either full figure 35 or full figure 33 is registered on the tape. Thus, should the stock go down from 34 to 33.22 no change on our records would be made. Similarly, a move upward to 34.88 would be disregarded. You see, therefore, that a stock may fluctuate less than 1 points without requiring any change on our Point and Figure data.
ONE CARDINAL PRINCIPLE
Fractional fluctuations are disregarded unless a new flat full figure is completed. We urge you to trace carefully, again, the move in XYZ by one point fluctuations as illustrated in Figure 4.1. Note the fact that fractional fluctuations are completely disregarded. A move which fails to record a new flat full figure is considered of no importance and, therefore, not taken into consideration.
GAPS ARE NOT RECORDED
Since vertical line bar charts have come into wider vogue, several technicians have laid down certain principles based upon the phenomena known as gaps. Gaps on a bar chart are created as a result of a thin market and occur (1) when the high of a day is lower than the low of the preceding day, and (2) when the low of a day is higher than the high of the succeeding day. Thus, you see, one gap is created by strength which leaves an opening between the low of the new day and the high of the previous day, and the other by weakness, which leaves a gap between the low of the preceding day and the high point made after the weakness developed.
In vertical line technique, commentators have noted that gaps created by a thin or unusual market are, as a rule and in the majority of instances, closed over sooner or later by subsequent market action. The principle of gaps and their subsequent closings is not to be relied upon in all instances. While it is customary for gaps to close shortly after they are left by market action, it is not a fixed rule, and cannot be thoroughly relied upon. Gaps exist in many issues, both above and below present market action. In rare cases, some take years before subsequent action will close the gap. The Point and Figure Method completely disregards the gap phenomenon and its theory. Since we are interested in price fluctuations and the recorded trail of the price path, the mere fact that no transaction takes place at any particular point in that path is of little consequence and is not taken into consideration.
HOW THE GAP OCCURS
Let us illustrate and show you an actual example of how the Point and Figure Method provides for gaps in the price track of a price movement. Let us assume, for instance, in XYZ, that full figure 38, recorded at the bottom of the fifth rally when the stock moves down from full figure 39 to full figure 38, represents the closing at a particular day, and that overnight some bullish news is released unexpectedly and a sudden demand is created for the stock of the XYZ company. A news item such as "XYZ dividend rate raised from $2 to $4" might create such a situation. Let us suppose that some trader wishes to buy one thousand shares quickly believing that subsequent market action will show good profit for a new position established at this point. He places an order with his broker to buy 1,000 shares of XYZ, "at the market." The quotation on XYZ, is: "38.5" bid, offered at 40." The block of shares offered at 40 is only 200, and, therefore, the broker must take 200 at 40, 100 at 40.25, 100 at 40.75, 300 at 41, 100 at 41.20, and 200 at 41.75.
This transaction on the tape would have appeared as follows:
With the previous close having been registered at 38, these transactions shown on the tape would require the following changes in our graph:
PLOTTING THE GAP
Following the 38 in the vertical column and above, an "X," would be plotted in 39, even though no transaction appeared between the previous 38 and the opening 40. The next symbol recorded would be the zero in the 40 square, and then the "X" in the 41 square, representing transactions up to and including the 200 shares sold at 41.75.
Subsequent action of XYZ for the rest of the day included a continuation of the strength up to 44.85, followed by a reaction to 41.0 where the stock closed. That action on the tape would be illustrated by a continuation of plotting "X's" in the vertical column up to and including the "X" representing the figure 44, and then the reversal of the trend showing the "X" in 43 moving over to the next right hand column, then 42, and finally 41, where the stock closed.
Thus, you see, in order to develop the proper technique for creating reliable patterns on our Point and Figure Charts, we disregard the theory of gaps since it has no influence on our conclusions.
THE ONE POINT CHART
Since all conclusions and subsequent records are compiled from your one point charts, it is the best policy to keep them with greatest care. One point charts should be made in the simplest manner possible and by means of the "X," "5," and "0", symbols hereinbefore described.
While any square ruled paper may be used for this purpose, it is better to use the specially designed paper which is available for this purpose and which will permit the accurate plotting of trend lines and the quick recognition of the 5 and 10 levels, as well as the full fulcrum, the catapult, and semi-catapult as they develop. In order to get a better and clearer conception of market action, it is advisable also to compile a substantial quota of charts and keep them up to date, since a comparison of the patterns formed on the individual charts will enable you better to judge the important trends and the vital turning points. No matter what your plans may be, whether you trade for the shorter swings or invest for the longer pull, you will require these one point charts. No reliable analysis of technical condition can be made without them.
It is from the one point charts that we are able to recognize zones of accumulation, the beginning of the mark-up, the vital points at which to place long positions, the critical points at which stop orders should be placed, and, finally, indications of distribution.
THE THREE POINT AND FIVE POINT CHARTS
In addition to these one point charts, we will require, as a check on our work, three point charts of the same stocks and averages which we have plotted by one point moves. Three point charts are a resume of the action and are compiled solely from the moves indicated on your one point records. These three point charts enable you to keep a clear picture of the intermediate swings of most stocks. They give a true basis for analysis of the more volatile issues.
CONDENSING THE ONE POINT MOVES
Three point charts eliminate minor technical fluctuations and show the broader congestion areas. In making your three point chart, you must always remember that your one point records must show a move of not less than three points in the opposite direction before it is recorded on your three point condensation chart. For example: We start with the figure 40. Your one point chart must show a move to the figure 43, before any record whatsoever is made on your three point chart. This move from 40, to 43, would be plotted on your three point chart in the same manner as it is plotted on your one point chart. From 43, before we could plot a reversal on the three point chart, your stock must register a reaction to 40, or lower. However, should it react to 42, or 41, no change would be made on the three point chart. Now, in minor technical reactions to 42, or 41, followed by a subsequent rally, which would go above the previous 43, the move would be plotted by one point moves in the same column on your three point chart as the price advances above 43. Let us say, for example, that the stock rallies to 47, without a full three point reversal from 43. The added figures on your three point chart would be 44, 45, 46, and 47. Thus, you see that your three point chart will show a straight run from 40, to 47, with no other indications recorded. Temporary declines of less than three points are ignored on this chart, and continued subsequent advances above the previous high prices, should they occur, are carried forward by one point registrations in the same column. Three point charts are plotted only of trend reversals which are three or more points in extent. In all other respects, your three point charts are made in the same manner as are your one point charts.
The five point charts condense the price changes to moves of five points or more but not less. They are helpful in connection with the indices when prices fluctuate broadly and when they register in the higher price ranges, such as was witnessed in 1929. Five point charts are also very helpful in that they simplify the interpretation of the wider moving highly volatile stocks. Issues which advance or decline thirty to fifty points in a single intermediate market cycle must be plotted by five point moves, since these charts give the most dependable and satisfactory presentation of the technical condition of the issue. Five point charts are also helpful for the determination of the main and long term trends. They condense the time factor and show long term accumulation and distribution, thus indicating the trend or movement of capital as it comes into variable equities - common stocks - near the bottom of a bear market, and as it moves out of variable equities into bonds or other forms of wealth, at or near the top of a bull market. Five point charts are not necessary for all stocks and need only be kept of the highly volatile issues and the market indices.
The technique of preparing five point charts is exactly the same as that of preparing three point charts with the exception that it requires a reversal in trend direction of five or more points before that reversal is plotted. Continuations of direction of trend are plotted by one point moves until a full five point reversal is recorded on your one point chart.
OTHER HELPFUL AIDS
The three types of charts enumerated above may be considered the foundation and scientific keystone upon which this Method is based. In addition, it is sometimes advantageous to make half point charts of complete half point movements in low priced stocks which do not fluctuate sufficiently by full one point moves to give a satisfactory record on one point charts. Furthermore, half point charts are helpful in plotting the Dow Jones Industrial Index on an hourly, as well as on a half hourly basis.
THE METHOD SUBSTITUTES FOR TAPE READING
The half point charts are very helpful for many purposes. They permit the exponents of this Method to entirely eliminate from their operations the need for watching the tape. Under present day market conditions, half point charts of individual stocks, as well as half hourly changes, of the Dow Jones Industrial Index comprise a better and far more reliable basis for judgment than can be had from tape reading. Half point and quarter point charts are more sensitive and give an understandable basis for a detailed record which is vastly superior to the memory of any human being.
A running line of the Dow Jones Industrial Index, compiled on a half hourly basis, is very helpful as an aid in determining the narrow swings of the market. The running line index will be fully explained elsewhere in this work. In plotting commodities, it is sometimes helpful to compile your charts on the basis of quarter point moves or half point moves, as the occasion requires. In some instances, when the commodity prices fluctuate in money values as expressed in units and tens, our primary data charts can be made of each tenth penny fluctuation. Since we ignore fractions when making our one point primary charts, we would ignore fractions between the full figure and the half figure in making half point charts. Quarter point charts would be made by ignoring all one-eighth point moves.
We urge you, when making your Point and Figure Charts, to be sure to get all of the fluctuations.
TREND OUTLINE AND GEOMETRICAL CHARTS
Students and observers who are beginning to recognize the importance of a sound knowledge of stock market technique will find the trend outline and geo- metrical charts exceedingly helpful. Though not absolutely essential in the application of this Method, they are easy to read and very helpful. Geometrical charts are especially helpful since they show the trading range congestion areas and manipulation. They are also of great assistance to those who wish to use "stop orders," for the reason that a clear picture of the trading range limitations is always indicated.
Trend outline charts are made by merely joining the tops and bottoms, the extremes of the moves, with a diagonal line. They are illustrated in Figures 4.1 and 5.1. These charts differ from vertical line charts and are sometimes used by vertical line technicians as a condensation of the conventional vertical line charts. They enable one to eliminate the time factor and show the important swings of prices - the trend of speculation.
The geometrical chart is made by plotting the extremes of moves with horizontal lines and joining these horizontal lines by vertical lines, thus creating a geometrical pattern. (See Figure 5.2.)
Both geometrical and trend outline charts may be superimposed upon your one, three and five point charts by plotting the trend outline or the geometrical
Fig 5.1 XYZ: one point trend outline
Fig 5.2 XYZ: one point geometric
pattern over your symbols either in ink, or in crayon of different color from that which you use for the purpose of recording your basic data.
THE PROPER ISSUES TO CHART
When preparing a set of charts, it is natural and wise to plot the foremost market leaders. From time to time, market leadership will change. Therefore, as one group or one issue loses its popular investment or speculative following, it will be necessary to start charts on the new leaders. The following issues are suggested, at this time, as a good grouping, and, if carefully compiled and analyzed day by day, will guide the student and observer to a proper and prompt recognition of the vital turning points in the market:
American Sugar Refining
American Tobacco "B"
Case Threshing Machine
New York Central
Standard Oil of N.J.
U.S. Industrial Alcohol
U.S. Steel Western
No two technicians would select or agree upon the same list of leaders; therefore, we leave it to your individual selection to plot and record those issues which suit you best. However, keep a broad group so that the influence of their united action, both from the investment and speculative angles, will guide you in the recognition of important zones of accumulation, the trend of the market, as well as the zones of distribution.
COMMODITY PRICE MOVEMENTS
In a subsequent volume, the authors of this book will show in full detail, application of the Point and Figure Method to the analysis of commodity price movements. The Point and Figure Method has been used successfully as an aid in anticipating the future price movements of wheat, cotton, corn, grain, silver, and any other basic commodity dealt in on any Exchange where a free and open market exists and price change fluctuations are carefully and accurately recorded. As the work applying to commodities is more highly technical and more advanced, this subject cannot be discussed now. Those desiring to use the Point and Figure Method for the purpose of anticipating commodity price movements should and must master thoroughly all of the principles explained in this work as well as in the book Advanced Theory and Practice of The Point and Figure Method.
Social Bookmarking Links