Point & Figure charts are great for identifying support and resistance levels. The chart below shows the Nasdaq 100 ($NDX) bouncing off the 2790 level four times in the past week as a consolidation takes shape. The bulls have a clear edge as long as this level holds. Note that this P&F chart is based on 15 minute prices.
Click this image for a live chart
Click this image for a live chart
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. 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 market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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