Popularised modern point & figure signals
Thomas J. Dorsey
Tom Dorsey co-founded Dorsey, Wright & Associates in 1987, a point & figure research firm that Nasdaq acquired in 2015. His book Point & Figure Charting, first published in 1995, popularised ChartCraft's box-size table and three-box-reversal signals.
What they argue
- A standard box-size table (bigger boxes at higher prices) keeps P&F charts comparable across stocks.
- The double-top breakout and double-bottom breakdown are the core buy and sell signals from which wider patterns are built.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Books and papers
- Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices (1995)
Point & figure double-top breakout (3-box reversal)
Rule and full recordBreakouts & channels · daily · with A.W. Cohen
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: