Single buy signal

This formation is the first buy signal you learn in point and figure. This signal consists when a quotation found resistance one time before and with the second intend the next X,s column can rise higher tan before. This means that demand is in command in that market this time and we should buy. We see in the image that the previous O column is also rising, so that means that the few sellers are only like to sell at higher prices.

Single sell signal

The opposite of the first formation is the single sell signal. This signal consists when a quotation found support one time before and with the second intend the next O,s column falls deeper tan before.This means that supply is in command in that market this time and we should sell anything that we don,t have. We see in the image that the previous X column is also falling, so that means that the few buyers are only like to buy at lower prices. The previous X column is not able to pass the column before this is a sign of trend weakness like a 1-2-3 high with some kind of point and figure ross hook.

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