Point‐and‐Figure Charting
Figure 15.43 High Pole Warning on a Three‐Box Reversal Point‐and‐Figure Chart
of Comcast Corp.
Courtesy of Stockcharts.comusing moving averages and bollinger bands
on point‐and‐Figure Charts
Moving averages are sometimes also used on Point‐and‐Figure charts. The average
is calculated by finding the average price of a column of boxes, that is,Average Price = Highest Box Price + Lowest Box Price /2( )A simple moving average is then calculated based on the lookback period se-
lected, that is, the number of lookback columns. Note that a Bollinger Band also
uses the same moving average calculation for its central value. In Figure 15.44,
we see the upper Bollinger band providing resistance to price while the moving
average provides support.15.3 Point‐and‐Figure Minimum Price Objectives
There are two approaches that the Point‐and‐Figure practitioner may em-
ploy to gauge the minimum potential price targets of various Point‐and‐Figure
formations.