Point and Figure Charts: Trend Reversals

Point and Figure Charts: Loss of Momentum

After an up-trend, marginal new highs on the Point and Figure chart (especially where accompanied by equal or lower lows) indicate a loss of momentum and may evolve into a stage 3 top.

Point and Figure Charts: Marginal Higher Lows

In a down-trend, a series of higher lows indicate accumulation. Equal or rising highs are a further bullish sign.
Enter on completion of the third higher low: the start of the fourth column of Xs.

An inverse of the pattern in an up-trend, where you have several marginal lower highs, would be a strong bear signal.