Point and Figure False Breaks

Point and Figure Up-Trend

In a Point and Figure up-trend, if price falls below the previous low by only a small margin (normally only one box) and then promptly reverses upwards, buy on recovery above the previous low.

A possible weakness of Point and Figure charts: you will not see the recovery until price has increased by the reversal amount.

Point and Figure Down-Trend

The same applies to down-trends. If price rises above the previous high by a small margin and then promptly reverses, buy on the retreat below the previous high.