Point‐and‐Figure Charting
all the rows of boxes and dividing the total by the number of rows, then multiply-
ing the number of boxes by the box size and reversal size. This total is then added
to the price of the lowest box in the formation. See Figure 15.45.
The same applies for the downside vertical count, except that we subtract the
total from the highest part of the formation.the vertical Count
The second approach for gauging the minimum potential upside or a downside
price target is called the vertical count, where minimum price targets are based
on the:■ (^) Number of boxes in the breakout column
■ (^) Average number of boxes found across a number of columns and rows within
a consolidation
■ (^) Box size
■ (^) Reversal size
■ (^) Reversal to confirm breakout column
■ (^) The two‐thirds reduction (for downside vertical counts)
For upside vertical counts, find the number of boxes in the breakout column
after a subsequent reversal has confirmed the column action. Multiply the number
of boxes in the breakout column by the box size and reversal size. Add this total
to the price of the lowest box in the breakout column. See Figure 15.46.
The calculation is similar for downside vertical price projections. Multiply the
number of boxes in the breakout column by the box size and reversal size after
a subsequent reversal has confirmed the column action. Subtract this total from
the price of the highest box in the downside breakout column. Note that some
Figure 15.45 The Upside Horizontal Count.