Quiz 12: Chart Studies – Figure Charts

What is the most important thing(s) to know before a speculative position is taken.

The correct way to count a phase is to start at the left and work to the right.

Always take the most conservative figure point count first.

A figure chart shows how a coin is moving, a vertical line chart tells what the coin is doing.

A figure chart will give you the possible extent of a move. How far it may go, and when it is likely to run into opposition.

After having seen a sign of strength, locate the last point of supply on a rally and count from right to left.

After having seen a sign of weakness, locate the last point of supply on a rally and count from right to left.

To properly identify a sign of strength and last point of support we need study price spread and volume on the figure chart.

In the case of a longer term count, often the last point of supply (LPSY) comes at the original level of climax.

Figure count objectives are stop, look and listen areas. Not hard and fast exact points.