What is a Bearish Signal Reversed on the Point & Figure Chart? (video)


A bearish signal reversed is a bullish P&F signal that suddenly occurs after a series of lower lows and lower highs. First, a P&F downtrend needs to be present on the chart. Note that X-Columns represent rising prices and O-Columns represent falling prices. A downtrend is present when successive X-Columns fail to exceed the high of the prior X-Column and O-Columns form lower lows. The bearish signal reversed signal occurs when the current X-Column surges above the prior X-Column to reverse this downtrend. 

The chart above shows Vulcan Materials (VMC) with a series of lower lows and lower highs since August, which is marked with the red number 8. Actually, the downtrend has been present since April (red 4) because the X-Columns have not formed a higher high since March (red 3). After making another lower low at 55, the bearish signal reversed with a surge above the prior X-Column. Before leaving this chart, notice that the current X-Column is challenging the bearish resistance line. 

Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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As always, a very interesting presentation. Thanks for being you.
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