XAO

"Some people regard a stock (or the market) in this (springboard) position only when it breaks through an old line of resistance or support into a higher or lower field. I claim that the beginning of the springboard move is at the bottom of a range of accumulation, or in the upper levels of a range of distribution."

 R D Wyckoff

Consider can  it  be as simple as this ? YES ..IF You want it to be and if the chart and line are both kept sensitive 

Consider that it is the 45 degree movement / Vector that is KEY

What does Sensitive involve......Relative Signs of Weakness & Signs of Strength , Behavior and Change of Behavior ... Ease of MOVEMENT..........And importantly EMPTY SPACES versus TIGHT FORMATIONS... and especially  on small scale charts ==> discontinuities/gaps 

Point and Figure...The chart.. The Point and Figure CHART ( movement/Intrinsic time ) is whatmakes the Diagonal........This is very important  to realize and understand...

Motorway

 The bottom of a range of accumulation, or in the upper levels of a range of distribution.

This is what makes the top of each column of Xs and the bottom of each column of Os ---So Significant....It is where Supply overcame Demand . IS where Demand overcame Supply

Always ask at least two questions .. Look at your charts from the argument of DEMAND . But then also look at your charts from the Argument of SUPPLY .. ( flipping & reversing charts was an old P&F trick to aid in this ) and ALWAYS look at context . Dynamic HISTORY .. The Where From..

First chart is the  1 box reversal .. What are the Bullish and Bearish STATEMENTS ?

Second is the 3 box reversal .. One of it's tasks is to bring what is separated  closer together . IE To remove the Horizontal Spaces .. To Emphasize TRENDING .. To Highlight and increase clarity , by giving you less .

The Horizontal Line I have drawn before it was broken  is what I call Obvious Support . It is Obvious , but not Necessarily Support or Necessary Support.. 

Now however it has become  a very important line to use ... It is often referred to as old support that has become new resistance.. ( also concepts of ICE and CREEK  )..

I tend to think it is the most important Horizontal Line we can draw on our charts ( and of course the converse of old resistance becoming new support )..

However REMEMBER ... Only the chart Itself reveals the TRUE TREND

The CHART itself is always the MOST IMPORTANT OF ALL...

  Huge Topic :-) 

Motorway