EZ-PnF V2.1 Sample chart of SUNW (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.
• SUNW is in an overall bullish trading channel. SUNW was trading overall bearish trading channel. But the uptrend column ('X') has broken through the overall bearish resistance line and given a buy signal to confirm the overall trading channel change to bullish.  Resistance may be seen at points R1 through R5. Support may be seen at points S1 through S4. Support point S1 must hold to preserve the overall bullish trading channel.