A Long Tail Down must have at least twenty Os down. A buy signal is given whenever there is a 3 box upside reversal. A stop-loss can be placed where a double bottom sell signal may occur.
The stock went down drastically because of some bad news which forms more than 20 Os in the Point and Figure chart. The 20 or more boxes should have been formed in a short period time. It will be considered as trend change when the stock forms at lease 3 Xs. Formation of Double Bottom can be consider as more bearish and it can also act as support level.
The stock went down drastically because of some bad news which forms more than 20 Os in the Point and Figure chart. The 20 or more boxes should have been formed in a short period time. It will be considered as trend change when the stock forms at lease 3 Xs. Formation of Double Bottom can be consider as more bearish and it can also act as support level.