Point & Figure

Start with ATR-based sizing: ATR(14) / 2 or / 3. For SGX blue chips, S$0.20-S$0.50 works well. If you see too many columns, increase box size. If you miss moves, decrease it.

P&F focuses purely on price movement. New columns form based on price reversals, not time. This filters noise and shows only significant price action. Days or weeks can pass in a single column.

3-box reversal requires price to move 3 boxes in opposite direction to change columns (standard). 1-box reversal changes columns on every reversal (more sensitive). Use 3-box for swing trading, 1-box for short-term.

Enter on confirmed breakouts: Double top buy = X exceeds previous X column high. Wait for the breakout box to complete before entering to confirm the signal.

Place stop below the pattern low (lowest O in recent columns) or below the bullish support line. This gives the trade room while protecting against major reversals.

Vertical Count: Target = Breakout + (Column Count × Box Size × Reversal). Horizontal Count: Target = Breakout + (Pattern Width × Box Size × Reversal). Use vertical for impulse moves, horizontal for consolidations.

Double Top = X exceeds ONE previous X column high. Triple Top = X exceeds TWO previous X column highs. Triple Top is a stronger signal indicating more resistance has been overcome.

Bullish support: 45° line from significant low (one right, one up). Bearish resistance: 45° line from significant high (one right, one down). These provide objective trend guidance.

Yes! Use P&F for signals and price targets, regular charts for volume and time context. A P&F breakout with high volume on regular chart is high conviction.

Catapult = Triple top breakout + pullback + another breakout. It confirms the initial breakout and is a high-probability signal. The pullback holds above previous lows, then breaks out again.

Calculate % of stocks on P&F buy signals. Above 70% = overbought, expect pullback. Below 30% = oversold, expect bounce. Between 30-70% is neutral. Use for market timing and sector rotation.

Create P&F chart of stock/index ratio. X columns = stock outperforming. O columns = underperforming. Breakouts identify relative leaders before absolute breakouts.

Fulcrum Bottom: Wide base with multiple tests of same low. Fulcrum Top: Wide top with multiple tests of same high. These are major patterns indicating significant accumulation/distribution. Use horizontal count for large targets.

Long column (extended move) followed by 50%+ retracement of that column. High Pole = exhaustion after rally, take profits. Low Pole = capitulation after decline, watch for reversal.

Use longer DTE (60-90 days) since P&F patterns develop slowly. Use P&F price targets for spread strike selection. P&F support/resistance levels work well for short strike placement in credit spreads.