– Point and Figure charting is a price action only chart stye.
– No time or volume factor is involved.
– Reduces noise and anxiety.
Today’s article focuses on entry opportunities based on Point and Figure. This style of charting and analysis is the only logic and scientific based charting style in Technical Analysis and the only charting style that can be tested utilizing the scientific method. Additionally, it is a chart and analysis style that is singular to the field of Technical Analysis. Also, Point and Figure is the oldest form of technical analysis known – with many civilizations developing the style throughout antiquity.
Litecoin (LTCUSD – $5/3-box reversal chart)
Above: Litecoin (LTCUSD)
In my Litecoin video I stated I just wanted to wait and see what would happen on Litecoin’s chart before identifying any trade ideas. That being said, there are some opportunities present. The only current trade setup I see (and I’m not taking it, disclosure there) is a long entry based on the 3-box reversal off the current O-column. Now, I do want to point out that there is a double top at $230 and if a new column of Xs forms to create a triple-top, then the break of the triple-top would coincide with the break of the neckline – could be an explosive move on Litecoin’s chart in that event. But I favor the entry off the Pole Pattern.
Buy Stop @ $195
Stop Loss @ $180
Profit Target @ $220
Bitcion (BTCUSD – $500/3-box reversal chart)
Above: Bitcoin (BTCUSD)
Bitcoin has certainly collected a lot of buyers recently in the mid to lower $40k ranges, but it might be due for another push lower. You’ll notice that a sell signal printed with at $44,000 off of the break of a triple bottom at $44,500. At the time of writing, Bitcoin is trading at $45,000, so the entry remains valid. The profit target on the short would be measured utilizing the horizontal profit target method in Point and Figure charting. The target zone from the short entry is $42,000.
Sell Stop @ $44,000
Stop Loss @ $45,500
Profit Target @ $42,000
Stellar (XLMUSD – $0.005/3-box reversal chart)
Above: Stellar (XLMUSD)
Stellar has a beautiful triple-bottom setup on it’s $0.005/3-box P&F chart. The short entry would be at $0.31 with a profit target at $0.185. That profit targe was identified utilizing the horizontal profit target method. However – note that XLM also has an inverse head and shoulder pattern setting up on its chart. Watch closely for a return to the $0.40 value area as this could likely trigger a massive, massive impulse move higher.
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