When you trade Forex or any financial market, you need to know whether it is the
right time to buy or sell.
You don’t want to be that person buying at the top or
selling at the bottom,
Although this horrible experience is something all traders have felt at some time or the other, but should be avoided at all costs.
It’s our greatest fear that we make a terrible trade, and our desire to make a good
So we try to use some sort of technical analysis to determine the best entry point for our trade.
Most technical analysis is based on guessing an entry and hoping you put you profit take or stop loss in the right place. Point and Figure tells you exactly what to do, without guessing.
This is the reason that the simplest and clearest form of technical analysis has to be a Point & Figure chart.
These charts are price driven to show areas of supply & demand, identify
and will tell you whether buyers control the market or sellers.
You will see the simplest signals at a given price telling you what to do. there is no guesses there are just buy and sell signals.
You will learn to recognise top and bottom patterns and see where to enter and place your profit takes and stop losses.
Using Point & Figure will help you make the correct trading decision. by making the right entry at the correct price and place, your profitability can increase ten fold.
You will also get control of your trading as point and figure will install you with good habits that improve your discipline and your risk management.
Point & Figure charts clearly visualise the important areas of support and resistance, which experienced traders know how to utilise to maximise the chance of a profit, while minimise the loss potential.
The most basic rule of economics issupply and demand , point and figure uses the simple but dynamic rule to determine what would be a good entry point, a place to take profit and where to place your top loss
By following supply and demand you can ensure you have the correct position at all times in your trading. If the market moves against you or reverses you will get a signal in the new direction which you can adjust your position.
You will see every break out that the market does and Point & Figure will tell you at exactly the price it happens. This will ensure you never have the wrong position at the big moves. Which increase you returns.
In Point and Figure there are only 2 signals to recognise and learn, 2 types of top and bottom patterns to recognise.
You can use your existing knowledge if you have it, to recognise simple triangle formations and continuation patterns. If you are new to technical analysis there is no better place to start than point & figure as you are not be bombarded by different patterns or jargon terminology.
You will soon determine if there is a trend to follow or a range to play. Beginner to Advanced analysis can take just a short period. Then you will be trading at the right places like a true Forex Professional.