Point and Figure charts make it Brain Dead Simple.
....771. NYSE Composite Index ($NYA) MONTHLY CHART
11105 the high of last July 2014 on this monthly chart and closed at the same level last Friday February 20th! Where is price NOW!
February 27, 2015. Now we know that the biggest stock exchange in the world did not advance this week! Just the facts.
....7712. $NYA - daily PnF ATR scaling
This PnF chart has a scale that is calculated based on the average size move called ATR or Average true Range.
Currently on a buy signal as of October. It is marked at the top of the chart under the heading PnF pattern.
The box size adjusts to volatility . The red line is called the Bearish Support line! It is resistance until proven otherwise.
...36. Russell 2000 Small Cap Index ($rut)
The TED LINES won't change (they have been posted in advance for months and sometimes years) and they are where price will change momentum or direction.
Support and resistance is not based on pivot points, or theory, it is based on objective analysis of price activity over the life time of a trading instrument.
The only thing we can objectively define in advance is support and resistance. What else do you really need to know. (except understand the methodology to find it) Support and Resistance based on price analysis may be objectively defined.
You are the judge! You can evaluate the outcomes on these charts.
...366. $RUT - 1 hour Candlesticks, 1024 3
1173 has been a price level where the Russell 2000 has changed direction 8 times since Oct 31, 2014. (not 2015)
Watching where (not when) price has changed momentum or direction before offers insight into the next price that the process may repeat.
...3666. $RUT - daily PnF, 460
Look left to be right.
..411. NASDAQ 100 Shares (QQQQ) candle
Now the activity is at 108.00 +/- a small margin of error.
Now we can see that within the margin of error of 1/2 of one percent that 104 +/- .50 cents has been an important level before.
One message! If you know how to to accurately find support and resistance you can make it work for you.
If you don't know, you don't know! It's in my e-book!
It is all about objectively defining where price has changed momentum or direction in the past. These are the TED Lines and they are posted in advance are are light years ahead of any other indicator.
..42. QID - Daily Candlesticks, 1024
Added on May 18th with Tedlines based on a 60 minute PnF ATR chart
..43. QLD - Daily Candlesticks, 1024
..433. QLD - 60MN PnF, 460
1. $INDU - Daily Candlesticks, 1024
February 27 close 18,132
January 30 close 17164
Dec 31 close 17823
Nov 28 close 17828 (Last trading day of November)