The first market P&F chart is the Bullish Percent chart - this works by keeping track of the percentage of P&F charts that last showed a bullish signal... this percentage is then charted.

'Phase' information provides a quick guide to whether this is a bullish or a bearish market - is it bullish, bearish, a bullish period during a longer bear move, and so forth.

The chart at left shows the FT350 chart for 26 Apr 04 - the market is currently in a bullish mood. Note, however, that it is now entering the red section of the chart - this is a warning, although bullish we are expecting a correction soon, once 70% of the shares in a market have buy signals showing it's getting too late to buy

The Bullish percentage chart can be drawn for any group of shares you choose to load

The Bullish percentage chart tends to signal the mood in the longer term, a complementary and shorter term indicator is the 'Percent of Ten' chart which looks similar to the Bullish Percent but is based on the number of shares trading above their ten week moving average.....

...The Percent of Ten chart then:

This is a 'faster' moving chart, showing the FT350 for the same period as the Bullish chart above. Note how much more activity this shows. The %10 chart shows that a bullish move up from around 40% stalled at the present level several times - of the last three X columns before this one 2 have stalled at this level, one (the one before the current column) stalled 2% lower.

For now the message is 'short term bullish' but the two charts combine to suggest the market should be topping....

What happened next?

This actually turned out to be the top, with the 350 closing at 2318.4 on the preceding day - the bottom that followed was at 2204.8