Price projections on point and figure charts
by Luis Ballesca Loyo
One of the great advantages of point and figure (P&F) charting is its well-defined features: price
formations, buy and sell signals, trendlines and price projections.
The P&F method establishes a price objective that a security could reach when its price breaks (or
penetrates) a formation. Two types of projections are possible: horizontal and vertical counting. These
techniques calculate a proxy for the price objective by applying the formulas in Figure 1.
Figure 2 shows a breakout to the upside of a bullish symmetrical triangle on an arithmetically scaled
chart. From this, we can make the next price projection: