文档介绍：TECHNICAL ANALYSIS
ANALYZING SUPPLY AND DEMAND
USING POINT AND FIGURE CHARTS
By Wayne A. Thorp
The usefulness of One of the basic principles of economics is the law of supply and demand.
point and figure It states that when there are more buyers than there are sellers of a given
good, the price should rise. Likewise, when there are more sellers than
charts lies in their buyers, the price should fall. In this technical analysis article, we focus on a
ability to filter out type of chart that attempts to capture the battle between supply and demand:
short-term price the point and figure chart.
fluctuations that Point and figure charts have been in use for over 100 years, yet they exist
in relative pared to bar charts and candlesticks. Their useful-
occur during longer, ness lies in their ability to filter out market “noise”—short-term price fluctua-
more established tions that occur during longer, more established trends. They differ from the
trends. They differ more conventional charts in that they ignore the passage of time and do not
from the more take trading volume into account—they are only affected by price move-
conventional charts ments.
Figure 1 is an example of a point and figure chart for Cisco Systems,
in that they are only which covers daily price movements for the period from January 4, 1999,
affected by price through April 31, 1