Originator of the three-point reversal point & figure method
A.W. Cohen
A.W. Cohen is credited with the classic three-box-reversal point & figure chart drawn with X's and O's, set out in his 1947 book on the three-point reversal method. He was the editor of ChartCraft, the chart service Wikipedia says he founded, and wrote several books on the method.
What they argue
- Only price moves of at least one full box matter, and a trend changes column only after a three-box reversal; time and small wiggles are noise.
- A column of X's breaking above the prior X column is the basic buy signal, and an O column breaking below the prior O column the basic sell signal.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Books and papers
- How to Use the Three-Point Reversal Method of Point & Figure Stock Market Trading (1947)
Point & figure double-top breakout (3-box reversal)
Rule and full recordBreakouts & channels · daily · with Thomas J. Dorsey
A point & figure chart ignores time and plots only moves of a set size, in columns of X's (rising) and O's (falling). Own the stock after an X column tops the one before it; sell after an O column breaks below the one before it.
Best risk-adjusted results against buy and hold: