Point and Figure charts make it Brain Dead Simple.
....771. NYSE Composite Index ($NYA) MONTHLY CHART
March 20th! The high of the month is at an interesting level.
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.
....7711. $NYA - Quintruple Top at 11100
July 29th. Have you noticed that there are changes registered every 5-7 days? Back to X's as of yesterday and resistance at 19900 and a comment on June 29th exactly ONE month ago.
July 23rd. A reversal to O's at resistance (11000) and the possibility of an interesting pattern (bearish catapult) if 10650 (double bottom) is lost as support.
July 13th. A low pole reversal where one half or more of the column of O's has been recovered into X's (demand). 11000 was the low of May and is resistance.
June 29th! A triple bottom at 10900 and should price move to 10850 a new sell signal will be generated. The notes below at May 28th explain the pattern was a Bull trap.
June 22nd A new buy signal at 11150 with resistance at 11200 and a 3 box reversal to O's if price moves to 11000 or lower
June 18th The red line is called the bearish support line and if broken will generate a new buy signal.
June 11th. The blue line as we mentioned is a significant level of support and a three box reversal as of today would be at 10950 and that is the line.
May 28th. At the top of the chart you will see any new patterns. As of the moment, the PnF pattern is a 'Bull Trap' as a new buy signal was elicited at 11250 and then an immediate reversal to O's and a sell signal.
The blue line is called the Bullish Support line and is always at 45 degrees and usually signifies and important level of support or resistance.
11100 we see a total of 5 X's spread over the period since July 2014. (7 for the 7th month of last year)
...36. Russell 2000 Small Cap Index ($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
1277 is an important price point after losing the short term trend line as support. Look way left to see the trend line we are referencing.
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
..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)