Another example of:
1) Drop- Base- Rally
2) Rally-Base-Drop
3) Rally-Base-Rally
4) Drop-Base-Drop
Supply and demand levels work the same in point and figure as they do in other styles of charts. Look for an area where trend reversed strongly. Your typical rally-base-drop or drop-base-rally would do just fine. You should look to buy or sell when you receive entry signals in those areas only.
There is no reason why you cannot take only the trades that offer the greatest potential for success and the lowest risk in relation to it.
1) Drop- Base- Rally
2) Rally-Base-Drop
3) Rally-Base-Rally
4) Drop-Base-Drop
Supply and demand levels work the same in point and figure as they do in other styles of charts. Look for an area where trend reversed strongly. Your typical rally-base-drop or drop-base-rally would do just fine. You should look to buy or sell when you receive entry signals in those areas only.
There is no reason why you cannot take only the trades that offer the greatest potential for success and the lowest risk in relation to it.