EZ-PnF V2.1 Sample chart of IBM(05/19/98):

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.
• Four possible support prices and five 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 has broken out to the upside after having traded 'sideways' for almost 8 months. IBM is currently in an uptrend column ('X'), having given a 'buy' signal. The current vertical count price objective is $180. Resistance may be seen at points R1 thru R5. Support may be seen at points S1, through S4.  Support point S3 must hold to preserve the overall bullish trading channel.