Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices, 4th Edition
If you're looking for an investment approach that has stood the test of time—during both bull and bear markets—and is easy enough to learn, whether you're an expert or aspiring investor, then Point and Figure Charting, Fourth Edition is the book for you. Filled with in-depth insights and expert advice, this practical guide will help you grow your assets in any market.
In this reliable resource, the world's top point and figure charting expert, Tom Dorsey returns to explain how traders and investors alike can use this classic technique—borne out of the irrefutable laws of supply and demand—to identify and capitalize on market trends.
- Describes, step-by-step, how to create, maintain, and interpret your own point and figure charts with regard to markets, sectors, and individual securities
- Explains how to use other indicators, including moving averages, advance-decline lines, and relative strength to augment point and figure analysis
- Reveals how to use this approach to track and forecast market prices and develop an overall investment strategy
- Skillfully explains how to use point and figure analysis to evaluate the strength of international markets and rotate exposure from country to country
Today's investment arena is filled with a variety of strategies that never seem to deliver on what they promise. But there is one approach to investment analysis that has proven itself in all types of markets, and it's found right here in Point and Figure Charting, Fourth Edition.
Part I Learn the Point and Figure Methodology
Chapter 1 Introduction 3
Chapter 2 Point and Figure Fundamentals 29
Chapter 3 Chart Patterns 61
Chapter 4 Foundations of Relative Strength 105
Chapter 5 Advanced Relative Strength Concepts 145
Chapter 6 Primary Market Indicators for Gauging Risk 183
Chapter 7 Secondary Market Indicators 223
Chapter 8 Sector Rotation Tools 247
Part II The Point and Figure Methodology— A Complete Analysis Tool
Chapter 9 Fixed-Income Indicators 275
Chapter 10 Utilizing the Exchange-Traded Fund Market 291
Chapter 11 Evaluating the Commodity Market for Opportunities 319
Chapter 12 Trading Options Using Point and Figure 349
Part III Apply the Point and Figure Methodology to Your Investment Process
Chapter 13 Portfolio Construction and Management 369
About the Web Site 379
THOMAS J. DORSEY is cofounder and President of Dorsey, Wright & Associates, LLC, a registered investment advisory firm that specializes in research and investable products based on the Point and Figure method of technical analysis. Formerly a senior vice president and director of Options Strategies with Wheat First Securities, and a stockbroker with Merrill Lynch, Dorsey has become the industry's foremost expert in Point and Figure Charting and teaches this method worldwide. He has appeared on mainstream financial media including Fox News's Cavuto on Business and received the Distinguished Speaker Award from the Wharton School of Finance Securities Industry Association. Mr. Dorsey is also the author of three previous editions of Point and Figure Charting and Commodity Strategies: High-Profit Techniques for Investors and Traders, all published by Wiley.
SARA GIEGERICH is Corporate Counsel to Dorsey, Wright & Associates. Ms. Giegerich began her current role in September of 2011; however, she has been with Dorsey Wright for nearly a decade, having started as an intern in high school. She worked for the company throughout her education at the University of Virginia and the University of Georgia School of Law. Ms. Giegerich was instrumental as an analyst, project manager, and editor for every facet of the fourth edition of Point and Figure Charting.