EZ-PnF V2.0U Sample chart of IBM(02/27/98):

Notes:

• The chart is a 3 box reversal Point and Figure chart.
• The chart is based on daily high and daily low prices.
• The chart is a 2% logrithmic chart, ie each chart box represents a price change of 2% of the value of the box above or below it.
• Five possible support prices and four possible resistance prices are shown, as well as the support/resistance lines.
• A 'resistance' or 'support' point is a price where an issue's upward or downward price movement may 'stall'. The ultimate result of the 'stall' may be either a continuation or a reversal of price movement, depending on whether there are more or less sellers than buyers at the specific price point.
• IBM is trading within an overall bullish trading channel. Currently, IBM appears to be in a 'broadening' formation after having traded 'sideways' for almost 8 months. IBM is currently in an uptrend column ('X'), resistance may be seen at points R1 thru R4. Support may be seen at points S1, through S5.  Support point S1 must hold to preserve the overall bullish trading channel.

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