|  JUL 1997

V15:7: Letters to S&C

POINT & FIGURE CHARTING Editor, Concerning Daryl Guppy’s March 1997 article (“Building point & figure charts”), the one-box point & figure chart was created incorrectly. When the reversal is one unit, you do not always move one column to the right. The only reason to move one column to the right in any P&F chart is to avoid overwriting the Xs or Os in the current column. You will always need to move to the right in reversal charts of two, three, five or more units, but not with one-unit reversal charts. For example, if the price reverses by only one unit and then reverses back again, you do not move one column to the right each time. Some commercial technical analysis programs draw one-unit reversal charts the same way as for reversal charts of three units, which contributes to the incorrect method becoming the stan-dard. But any quality textbook on one-unit reversal P&F charts will confirm the correct method. One-unit charts are the only P&F charts that can have an X and an O in the same column. LES WEBSTER, via E-mail

by Technical Analysis, Inc.