Exchange rate analysis with point & figure charts

The aim of this publication is to present a specific exchange rate forecasting technique: the point & figure chart. Part one lays out the fundamentals of constructing point & figure charts, the appearance of chart signals (buy or sell signals), the emergence of trend or trend channels, and the construction, development and significance of chart formations in prevailing trend channels or as trend change formations. Part two describes trading tactics and risk assessment, which are calculated before taking forex position. Trading tactics are based on the observed rate behaviour in trend channels and trend changes. Risk assessment, developed by the author, attempts to capture the potential impact of the prevailing market forces on the course of the expected forex rate movements and to determine optimal buy or sell positions. Point & figure charts indicate the dynamics and volatility of movements in exchange rates over time, enabling the speculative trader or the investor with a longer-term orientation to timely take into account the prevailing forex market forces and their changes.