Tradesignal offers a feature to combine different chart types like point & figure and candlesticks into one analysis. This Trading Tips issue explains why it makes sense to combine point & figure trend lines and candlestick charts.
Ask two analysts where to lay a current trend line and you will get three different answers. This is not as flippant as it sounds as trend lines by their nature are very ambiguous and really rely on ‘personal preference’. That’s because, or is a function of, the fact that there is no commonly recognised method on how to draw trend lines on bar and candlestick charts. These chart types are though, by far, the most common for viewing data.
With point & figure charts things are quite different. Point & figure charts define exactly on which highs and lows a trend line has to be placed. And this algorithm is built in to Tradesignal. You have got two indicators: ‘P&F Trendlines’ and ‘P&F Support & Resistance’.