USE THE RIGHT TOOL FOR THE JOB, my dad used to always to tell me. I was prone to use whatever was available as a youngster: Slot screwdriver for a Phillips head screw, circular saw when a band saw was called for – that kind of thing. Using the wrong tool just makes things harder, messier, and less successful. I have a lot more tools in my garage and workshop these days, so using the right tool happens more often now.
It’s the same thing with analyzing markets and making investment decisions. What ARE the right tools for those jobs? There we’re going to run into great divergence in people’s answers. At the risk of being redundant or pedantic about it, Dow Theory Letters has for years preached the wisdom of focusing on longer-term charts, specifically weekly and monthly bar charts. And in the case of point and figure (P&F) charts that ... Log in or subscribe to continue reading.