The Chart Professor is back so we can dive further into the stock charts you need to understand and analyze to make smart investment decisions.
This week Bruce Kamich, our resident Chart Professor and in-house technical analyst, helps us really understand the point and figure chart. It’s one of the oldest charts in U.S. and dates back to 1880’s. A mark only is made on this chart when the stock moves a predetermined price. In the chart in this video, each “X” represents a move up. A “0” notes a reaction to the move.
And while it looks like you charting out football plays, it’s worth taking the time to really understand it — because too many investors don’t.
Here are the pros and cons, per Kamich:
Pros
Just focuses on price changes – ignores “noise,” volume and time
Breakouts and breakdowns are clearer
Adaptable
Can give longer-term price targets
Cons
Not popular
Conceptually hard to understand at first
So watch the video above now to learn more and be sure to reach out to either of us if you have any questions or want us to cover something special @ tracybyrnes @ brucekamich.
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