Thomas Dorsey – Using Point and Figure Charts to Analyze Markets

Description

Understanding the Methodology

For over 25 years, Dorsey Wright has been a leader in technical analysis.  The root of our methodology is Point & Figure charting, and many of the tools and frameworks available on the DWA Global Technical Research Platform are derived from Point & Figure techniques.  Understanding the methodology is a crucial first step to truly learning the craft of investing, and will enable you to get the most value possible from Dorsey Wright’s research.

 

Unbiased and Objective Strategy

“The public, as a whole, buys at the wrong time and sells at the wrong time.” – Charles Dow, 1900

Successful investing requires a clear and consistent strategy. Studies have shown that investors tend to achieve sub-par performance because they allow emotion to take over and fail to adhere to a consistent set of rules.

 

Dorsey Wright empowers clients with information and tools that enable them to manage a clear strategy based on objective, unemotional data. As a leading provider of technical analysis research for over 25 years, our tools and strategies have been tested through multiple market cycles.

 

We believe, and have demonstrated through the returns of our investment products, that it is possible to achieve superior investment performance. Strict modern portfolio theory has driven a commoditization of financial analysis, to the detriment of analysts and investors.  Our clients dare to stand out from the rest – and benefit from the differentiation that comes from having a clear and effective strategy based on time-tested principles

 

Cornerstone – Technical Analysis

“The rule is to cut losses short but let profits run.” – Charles Dow, 1920

The cornerstone of our investment approach is technical analysis – specifically, Point & Figure Charting and Relative Strength Analysis. Our tools cut through the clutter of day-to-day market action, identifying meaningful patterns in daily share price movements.

 

These can be applied at the country, sector, or individual share level, and across a variety of asset classes. The goal, always, is to manage risk and concentrate investments in those areas of the market with the highest probabilities of future outperformance.