In keeping with my habits of utilizing a variety of chart styles, I thought I would go over a unique alert within a Point and Figure (PnF) chart called the High Pole Warning.
First, a little on what a High Pole Warning actually means:
The chart example I will use for today is with FDO (Family Dollar):
Updated portion: Now let’s jump to the present to see what the PnF chart looks like:
The stock had a small reversal back up to test the 59 level but failed once again with another 3-box reversal. In addition, It suffered a Double Bottom Breakdown on January 6, 2012 and currently has a Bearish PO (Price Objective) of 48.