THE HAndbook oF TEcHnIcAl AnAlysIsFigure 15.41 Trendlines on a Three‐Box Reversal Point‐and‐Figure Chart of Alcatel-
Lucent.
Courtesy of Stockcharts.com
Figure 15.42 A Basic One‐Box Reversal Fulcrum Formation.
box in a falling column of Os. Many traders place stops using the reverse size + 1
rule. For example, if the reverse size is three boxes, the trailing stop would be po-
sitioned four boxes below the highest X in a column of rising Xs and four boxes
above the lowest O in a column of falling Os. Finally, the height of a formation
may also be used as a guide to the sizing of stops.