STOCK GOODIES PLAYS OF THE WEEK

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Point & Figure Charts ~ High-Low Method

There are two pricing methods available: the High-Low Method and the Close Method. Each method only uses one price point. Obviously, the Close Method uses the closing price only. The High-Low Method uses the high or the low, but not both. Sometimes both are ignored. Here are the rules for the High-Low method.

When the current column is an X-Column (rising):

Use the high when another X can be drawn and then ignore the low.
Use the low when another X cannot be drawn and the low triggers a 3-box reversal.
Ignore both when the high does not warrant another X and the low does not trigger a 3-box reversal.
When the current column is an O-Column (falling):

Use the low when another O can be drawn and then ignore the high.
Use the high when another O cannot be drawn and the high triggers a 3-box reversal.
Ignore both when the low does not warrant another O and the high does not trigger a 3-box reversal.