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.
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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.
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