Candlestick Charting For Dummies. Russell Rhoads

to make a tidy profit. Using the example in the previous paragraph, if you can buy at 50 and sell at 55 several times over, the returns can be astounding.

So why aren’t point and figure charts right up there with candlesticks in terms of usefulness? The answer is simple: Support and resistance levels show up well on candlestick charts too, and candlesticks also contain a variety of other information.

      

Although the technique is interesting and unique, point and figure charting is a throwback to a time when stock prices were charted based on the daily closing prices published in the financial press and were meticulously kept by hand. Its use has fallen by the wayside with the advent of modern technology.