Chart Patterns

There are 11 different patterns in the Point & Figure methodology. As chart develop, they will create a series of these patterns. If the series is mostly of positive patterns then demand is in control of that issue. If the series of mostly of negative patterns then supply is in control of that issue. Keep in mind with patterns that they are only one of several things we look at when evaluating any equity. For instance, when the market indicators are suggesting demand is in control of the overall market then the bullish patterns work out better than when the main market indicators are suggesting supply is in control of the overall market. Patterns are especially useful in determining entry points and logical stop loss points.