THE HAndbook oF TEcHnIcAl AnAlysIsFigure 15.46 The Upside Vertical Count.
practitioners employ the ‘2/3 rule’ to further reduce the amount of the projected
downside to account for the upside bias in the markets. In our example, our origi-
nal target of $15 thus becomes $30 – ($15 × 2/3) = $20. The practitioner has a
choice as to which he or she believes is more a more appropriate downside projec-
tion approach. See Figure 15.47.
Note that we have confined our calculations for determining price objectives
to arithmetically scaled Point‐and‐Figure charts. For calculating related price tar-
gets on logarithmically scaled chats, please refer to the Jeremy Du Plessis book The
Definitive Guide to Point and Figure, published by Harriman House Publishing.
Figure 15.47 The Downside Vertical Count.