Point‐and‐Figure Charting
Figure 15.40 Reversal of a Bullish Formation on a Three‐Box Reversal Point‐and‐
Figure Chart of Lightinthebox Holding Co Ltd.
Courtesy of Stockcharts.comtop of the column of rising Xs is an indication that there may be more supply in
the market than expected. See Figure 15.43.placement of stoplosses on point‐and‐Figure Charts
Stoplosses are usually placed:■ (^) Below the lowest X in the breakout column of an upside move
■ (^) Above the highest O in the breakout column of a downside move
Some traders also place trailing stops a certain number of boxes below the
highest box in a rising column of Xs or a certain number of boxes above the lowest