Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices

Like many other people, in the last 15 years I made a pile of money only to give it all back. Clearly, the odds of winning were stacked against me. I neglected to study business in my college career so I decided to read up as on equity analysis. I've been through 30 plus highly-rated books and thousands of magazines and web sites, and Dorsey is at the top. His books are well written and understandable; his tools and methods are the best.His method is based on supply and demand. If institutions and individual investors favor the stock or sector, the demand will cause the price to rise; if they disfavor the stock or sector, the supply of stock to sell will outweigh the demand and the price will sink. He charts the supply and demand tug of war for stocks, funds, sectors and the market. You can find a stock chart and fundamental data anywhere. He gives you comprehensive and powerful tools no one else has.I took advantage of the 3 week free trial to his website, and reviewed the archives of their "from the analyst" daily market report. They do get you into and out of the market and sectors in a timely fashion. Last year, in May 2001, they explained to their clients that the market was overbought and due for a correction. They would have had you out until September 24th, when they told you the market was extremely oversold to a degree only seen 14 times since 1955. Dorsey's tools and methods give you the courage to buy at bottoms and sell near tops. Dorsey and crew follow a top-down approach: market, sector, fundamentals, and technicals. He tells you to build a watch list of fundamentally sound stocks, then wait until the time is right to buy (and sell). I am truly surprised that more people have not heard of him. I think the deep-seated bias against technical analysis is the reason. Dorsey does not skip the fundamentals, he joins them to the technical picture of supply and demand, and overbought and oversold levels, to help you stack the odds in your favor.My highest recommendation is this: I bought this book for my dear old dad. He cannot afford to take another financial hit, and I think Dorsey's analysis and tools will help him.

If you don't understand technical analysis you will find these concepts very different from anything you've seen but after you grasp the basics you will then only begin to understand what a wonderful tool that point and figure charting is. Dorsey explains all the concepts in a very clear and concise manner. It is very easy to understand but don't let that mislead you into thinking that if it's so easy why isn't everyone doing it. That's the beauty of it. Not too many people know about this. It is uncanny how profitable your investing can become once you employ this methodology. I have been using the methods described in this book and I have been very successful. LAST YEAR (1999) I HAD A RETURN OF 61% WHILE ONLY BEING 70% INVESTED! Talk about low risk and HIGH RETURN! Of course you need to employ some fundamental analysis in conjuction with this technical analysis but I know I couldn't have had such a great year without P & F (point and figure). NO, it wasn't luck. I was invested in as many as 30 stocks and I had exposure in 15 different sectors while having no more than 2 or 3 high flying stocks at one time. Speaking of high flying stocks (like QCOM of which I didn't even have any positions in!), point and figure charting will give you the ability to invest in these wild ones while stomaching the volatility. All in all this book and more importantly this knowledge is the HOLY GRAIL for me!

This Dorsey book on P & F is actually a 10 star rating to me but I just got five to give.Say 5 stars for bringing me into a new but expuisite technical analysis technique. P & F is dealing with net-moves of prices only - anything inbetween is what Dorsey calls "noise". So, comparing P & F to standard analysis like based on Stochastik, ROC, RSI, etc., a typical P & F-buy or sell signal is sort of a yell at you to move yourself. As P & F signals are that compelling, it should be a good idea to use P & F in combination with standard techniques like a short term RSI, for instance, to make yourself detect first upcoming divergences and beeing aware of what might be showing up by P & F.Anyways, I changed my complete analysis directives, rebuilding everything over and put it all around Point & Figure after having read Tom Dorsey.The 5 stars virtually remaining to me I give for the master`s GREAT ATTITUDE of teaching! I've been busy with technical analysis for quite a while by now, having read a lot of books on it. The Dorsey system to me is (may be next to Pring's KST) the best I ever got known about. Dorsey is a great teacher - what is the more respectable the more it get's you finishing the book: Dorsey starts for beginners but ends deep within the subject - still talking to beginners. I bet he feels like a beginner too and I hope you know what I mean by that...

Supply and demand. The battle to determine prices. Economics 101. Did we forget how simple it was? Do we really need hundreds of different technical analysis methods? The focus of this book is on the basic principles of point & figure charting. It is easily read and digested.I appreciate the many analogies, like "send the defense on the field". Tom's illustrations and straightforward writing style puts this difficult subject within this reader's grasp. His ability to describe chart patterns in tactical detail helps to better understand the right time to buy and ... just as important ... the right time to sell!Heady analysts and gunslingers may take offense to the easy flow of this book. Tom's energetic style and subtle wit makes learning this technique a breeze. This book can help private investors to take the reins of their own financial chariots. It gets down. It shows you how to master the basic elements of point and figure charting. Tom takes the mystery out of Technical Analysis. The book serves its purpose very well!

Some people find a good thing early on and are smart enough to stick with it. I am not one of those people, but Tom Dorsey is. I've read about every TA book ever written, I've studied everything from stochastic to voodoo and back, and if someone asked me to recommend one single book for learning and successfully applying Technical Analysis in order to make money, it would be this book. The methods described are powerful yet simple, (which usually is the best), concise, (no filler), and include a strategy for any plan to make money in the market and avoid giving it all back. From the overall concepts of Point and Figure Charting to the specific rules for managing your trades, your portfolio, and your money, you'll be happy you took the time learn what Tom Dorsey has shared about those little Xs and Os.