New Members: Be sure to confirm your email address by clicking on the link that was sent to your email inbox. You will not be able to post messages until you click that link.

What is the purpose and insight gained by plotting a stock chart upside down?

I do not understand the advantage gained or insight obtained by plotting a shock chart upside down. What is the reason for doing so?
Please explain.
Many thanks,
--six

Best Answer

  • lmkwinlmkwin
    Accepted Answer
    It can remove the inherent bias that you may possess. Some people see things as consistently bullish, others as bearish. Inverting the chart can help you determine the chart. If you see a bullish chart, upside down, that means it's a bearish chart. Conversely, if the chart looks bearish upside down, it's a bullish chart. It actually comes in quite handy after significant moves. Trees don't grow to the sky, but it's often hard to believe that something so good, has changed it's attitude and actions.

    Inverting the chart is discussed in Jeremy DuPlessis books on Point and Figure. It works well, and should be another tool that you can use to determine changes in trends.

Answers

  • Many thanks, lmkwin, for the thorough explanation regarding the insight gained by plotting a stock chart upside down. Plus, I was trying to remember where I had read about inverting a chart. Thanks for reminding me!
    Take care,
    --six
Sign In or Register to comment.