Don't Ignore This Chart!

Dow Testing P&F Trendline Support - 11300 is the Number

 | 

So, how significant is the Dow's recent loss?  If you understand the power of P&F charting, you'll get your answer from this chart:

INDUPnF
For those that are new to P&F charts, remember that they automatically filter out insignificant price moves.  This is misleading to people who are used to looking at bar/candlestick charts and mentally filtering out outlying data.  Everything on a P&F chart is significant.  

In addition, every column on a P&F chart represents a slanted trend on a regular bar chart and therefore the automatic red and blue trendlines on a P&F chart are trends of trends - highly significant.  More on P&F charting

OK - enough background - the bottom line is that if $INDU breaks the current blue uptrend line, it will be technically significant.  11300 is the number (11250 if you want to be conservative).

Announcement from the Author

{{ announcement.content }}

Chip Anderson
About the author: is the founder and president of StockCharts.com. He founded the company after working as a Windows developer and corporate consultant at Microsoft from 1987 to 1997. Since 1999, Chip has guided the growth and development of StockCharts.com into a trusted financial enterprise and highly-valued resource in the industry. In this blog, Chip shares his tips and tricks on how to maximize the tools and resources available at StockCharts.com, and provides updates about new features or additions to the site. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus