How To Use The Three-Point Reversal Method of Point & Figure Stock Market Trading

A.W. Cohen’s Three-Point Reversal Method is a classic and foundational guide to one of the most enduring and precise forms of technical analysis—Point & Figure (P&F) charting. Unlike traditional bar or candlestick charts, Point & Figure strips away noise and focuses purely on price movement, allowing traders to spot trends, breakouts, and reversals with crystal clarity.

This book introduces the three-box reversal method, a powerful variation of P&F charting that filters out minor price fluctuations and sharpens the focus on meaningful trends. Cohen, a pioneer in technical analysis and the founder of Chartcraft (publisher of the Market Technicians Letter), presents his method with precision, practical detail, and a wealth of chart examples.

Perfect for traders who value discipline, objectivity, and rule-based systems, this method eliminates guesswork and emphasizes clarity in both entry and exit decisions. If you want to refine your charting toolkit with a timeless methodology, this book is a must-have.

✅ What You’ll Learn

• Fundamentals of Point & Figure charting and its structure
• The logic and mechanics of the three-point (three-box) reversal method
• How to construct, interpret, and trade P&F charts
• Identification of buy and sell signals based on breakout patterns
• Risk management techniques using support/resistance and price objectives
• The psychological edge of using rule-based, noise-free charting

💡 Key Benefits

• Master a time-tested method trusted by professional technicians
• Remove emotional decision-making with rule-based entries and exits
• Gain a unique visual edge in identifying clean price patterns
• Learn how to spot breakouts and reversal zones before they gain momentum
• Enhance your discipline and reduce overtrading

👤 Who This Book Is For

• Traders and analysts who want a clean, logic-based charting method
• Technicians learning Point & Figure for the first time
• Long-term investors seeking non-time-based confirmation methods
• Traders frustrated by false signals in candlestick or bar charts
• Anyone looking to add structure to their trading decisions

📚 Table of Contents

1. Introduction to Point & Figure Charting
2. Mechanics of the Three-Point Reversal
3. Drawing the Charts
4. Buy and Sell Signals
5. Patterns and Breakouts
6. Setting Price Targets and Stop Levels
7. Combining Volume and Trend Lines
8. Advanced Strategy and Timing
9. Chart Examples and Practice
10. Final Thoughts on Consistency and Discipline