Point and figure charts measure price changes and the direction of those changes without any consideration for volume or time. Basically an uptrend is represented by X's and a downtrend is represented by O's.
The beauty of these charts is just by inspecting them, you can estimate the direction of the fundamentals of a company. You can find a bearish chart with average fundamentals, but you cannot find a bearish chart with good fundamentals! By checking a point and figure chart before reading a quarter report, an investor can save time. If and only the point and figure chart passes all basic technical analysis, which only takes seconds, then an investor should start reading the company's fillings.

Hint: Always purchase a stock when the 20 and 10 day moving averages are horizontally or in an uptrend. If you check the stock symbol, AAPL, you can see 10 day moving average is in a downtrend. Wait until the direction changes to an uptrend.

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