The point and figure chart is great for Price Wave Analysis. These charts show the price waves that matter! The waves on the chart are the market massive foot prints the retail investor must follow.
The first chart is the ETF FXY (the FXY has been inverted) or the USDJPY. It shows the transfer from down waves to up waves and the waves that matter (3,2,1 in blue and red). If you are bullish you wish for the blue waves to behind you. Ride the wave until the wave support falls off!
After reviewing the above chart, how different is it from the chart below? Short answer : Not much!
In the chart below we now must watch for the next blue 3 or 2 wave to signal that further move higher is on!
The above charts are designed to use with Richard Wyckoff logic.
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