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

six
six ✭
in Using Technical Analysis
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

  • lmkwin
    lmkwin ✭✭
    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

  • six
    six ✭
    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

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