Color of text copied from source(with page number) = green

Color of my notes typed = black

Semi-catapult
There are essentially only two I -box patterns: semi-catapult, if the pattern is a continuation pattern; and fulcrum if it is a reversal pattern. Within these
two pattern types there are hundreds of variations.(p143)

There are essentially only two patterns in 1-box reversal charts:

i. semi-catapult, which is a continuation pattern(continuation up in bull trend or continuation down in bear trend); and
ii. fulcrum, which is a reversal pattern(reversal to the upside if formed at bottom and reversal to the downside if formed at top).
Within these two pattern types there are hundreds of variations.

Fig 1 Fig2

Fig 1 is a continuation double-top breakout buy signal in 3-box reversal charts

Fig 2 is a semi-catapult buy signal in 1-box reversal charts

Whereas there is only one version of the 3-box reversal’s double-top pattern, there can be many different variations of the 1-box reversal’s semi-catapult pattern, as seen below.
This is because there are a number of ways in which the price can oscillate before breaking out. The essential ingredient, however, is that there must be an advance, which is
pushed back, then at some stage - the catapult point marked with the arrow - the price breaks above the highest column in the pattern.

What defines a pattern as a semi-catapult, and therefore adds to its strength, is white space: unfilled boxes across the top of the pattern
(p121). Signals may be graded according to the width of the semi-catapult. A simple 3 column semicatapult is not going to be as strong as a 6 column
one(p122).
Examples of bullish semi-catapults in 1-box reversal charts. The arrow is showing what is called the “catapult point”.

Examples of bearish semi-catapults in 1-box reversal charts. The arrow is showing what is called the “catapult point”.
Full or True catapult – in 1 box reversal charts
The point at which the fulcrum is complete, and breakout occurs, is called the Full or True catapult in 1-box reversal charts. This is the point at which the
price has exceeded the high of the pattern (the fulcrum pattern, ie ) (p 138)

The fulcrum (p165)

It can be a fairly small pattern but in its larger form, it is the most important of all congestion area patterns. It was De Villiers who coined the term
fulcrum and went to great lengths to explain it by using the analogy of leverage in the subject of mechanics. The fulcrum occurs when the forces of
demand and the forces of supply are balanced.

Fulcrums can occur at bottoms as well as tops, as is the case with all Point and Figure patterns. It is less likely that you will see a fulcrum if you use end-
of-day data and 3 –box reversal charts. They are far more apparent when using tick data or 1-box reversal charts with end-of-day data, but that doesn't
mean you shouldn't look for them. In fact, if you do see one in a 3-box chart it is of very high significance. Fulcrums may be regarded as the head and
shoulders pattern of the Point and Figure world, although some attribute that honour to the poles discussed in the previous section. The reason is that, like
head and shoulders patterns, fulcrums are where the stock changes hands and positions are re-assessed.

The fulcrum takes on many guises. De Villiers listed three types, while Wheelan listed eight fulcrum tops and eight fulcrum bottoms. It is pointless listing
them all, but to assist identification there are some essential components for a fulcrum:
 There must be a downward move or downtrend into the congestion area. This means that there are more Os than Xs and the columns of Os are
longer than the columns of Xs. The downtrend is often within a clear channel.
 The downtrend must be broken by substantial sideways actIvIty. Sideways activity means that the columns of Xs and Os become shorter and
similar in length. This is caused by position adjustment or simply exhaustion. This sideways activity takes the price action out of the downtrend
channel.
 There is usually, although unfortunately not always, a half-hearted mid-pattern rally usually into resistance. This is caused by a number of factors
such as short covering by bears who have ridden the downtrend and believe it to be over and short-term buying by day traders looking for a quick
profit from an oversold situation, but the essential thing is that no group is buying to establish a long-term position. The sharpness of the
midpattern rally is caused by the lack of sellers.
 Lows should be re-tested again because, after the mid-pattern rally, there is no continued buying pressure: the short coverers have covered their
shorts and the day traders have taken their short-term profits.
 There will be further sideways congestion after the price has come back into the region of the lows and further position adjustment is undertaken.
 Once all the position adjustment has taken place and all the shorts are covered, bulls start taking their positions, the columns of XS start to
lengthen and more Xs than Os appear as an uptrend starts.
 •

 At this time one or more double-top or semi-catapult formations begin to occur as demand exceeds supply and the bulls push the price through
resistance levels.
 Finally the price breaks above the pattern mid-point, a full catapult in I -box reversal terms, and the fulcrum pattern is complete.
 •

 There is no time limit on the completion of the fulcrum.

Figure 3-39 shows a typical fulcrum bottom. There is a downward move into the congestion area, often, though not always, a downtrend channel. The
price action moves across and out of the channel as it consolidates sideways. There is a weak rally, which is rebuffed, and the price descends into the
support at the lows. It is during this sideways stage that bulls are accumulating at the lower levels. This is followed by a more determined rally which
leads to a catapult buy signal, where the X exceeds the highest X within the congestion area.

Figure 3-39 is a 1-box reversal chart and that is why the fulcrum can be seen. Figure 3-40 on the other hand, is a 3-box chart using the same data. The
resultant pattern is just a double-top buy signal. It won't always be the case, but this really highlights the importance of using 1-box reversal charts.

A reversal pattern in a 1-box chart is actually called a fulcrum (p138).

Bullish FULCRUM samples in 1–box reversals

Some more Bullish FULCRUM samples in 1–box reversals

From DeVilliers book

Fig 6.5 The true catapult – p74

Fig 6.7 The true semi-catapult – p77

Full or True catapult – in 3 box reversal charts
The breakout and pullback pattern was first described as a 3 -box pattern by Cohen and given the name, catapult. Unfortunately, this is a slightly
confusing name as you will see when 1-box charts are discussed below (p 136). This breakout and pullback pattern, first described as a 3-box pattern by Cohen, was
called a catapult by him. Unfortunately, this is a slightly confusing name as there is a 1-box reversal chart pattern also by the same name but with entirely different formation.
(Whereas the 3-box reversal catapult is a continuation pattern, the 1-box reversal catapult is a reversal pattern)

Strict rules as to what constitutes a 3-box catapult are not necessary; to qualify, all it needs are the following. [refer to Figure 3-24 (bullish) and Figure 3 -25
(bearish), below]
 A triple or multiple-top/bottom breakout. A double-top/bottom is NOT enough. Column 5 below is the initial breakout column.
 This first breakout should be between 1 and 3 boxes. See column 5 below. (I believe, he’s saying that the breakout should not proceed too far before reversing
– thus the verbage ‘between 1 and 3 boxes’).
 The price must then pullback into the pattern as in column 6 below.
 The pullback must not generate a reverse signal (I believe, he’s saying that the reversal must not proceed to far either – thus the verbage ‘must not generate a
reversal signal’).
 It must then turn around and break out beyond the previous breakout column as in column 7 below.
This needs to become the beginning of the document, later.

Double-top /double-bottom in 3-box reversal charts AND semi-catapult in 1-box reversal charts.
If, on a second attempt, demand, represented by a new column of Xs, overcomes supply and the column of Xs breaks above the previous column of Xs
(above the blue line in Figure 3-1), this is the most basic Point and Figure buy signal. Originally, the pattern was called a semi-catapult, and that name
was applied to the pattern whether it appeared in 3-box or 1-box charts, although the two charts tend to have a completely different look. Since Cohen's
work on 3-box charts, however, it has become widely known as a double-top buy signal. It is an unfortunate name because many will associate double-
tops and double-bottoms with M and W patterns, which occur as reversal patterns at the ends of trends in bar and line charts. The Point and Figure
double-top and double-bottom (note the hyphen) patterns give buy and sell signals, respectively, when the double-top or double-bottom is breached, as
you will see.(P115)

Because Cohen ignored 1-box charts completely, it is best to refer to the pattern in Figure 3-1 as a double-top when looking at 3-box charts and to the
pattern in Figure 3-2 as a semi-catapult when referring to 1-box charts. (P116 )

In the 3-box reversal’s double-top pattern, the breakout column of Xs must break above the previous column of Xs . Prior to the breakout there will have
been two level Xs in a row, with an empty box between, hence the name double-top (note 11). Actually the empty box is the top empty box of the column of Os
between the two columns of Xs. In the 3-box reversal’s double-bottom pattern there will have been two Os in a row, with an empty box between (note 11).
Actually the empty box is the bottom empty box of the column of Xs between the two columns of Os. (P116 )

Figure 3-1(3-box reversal) and Figure 3-2(1-box reversal) are created from exactly the same data and in both cases the signal occurs when, after a small
correction, an X is plotted above the highest X in the pattern. But recall that 1-box charts offer more detail than 3-box charts and so the chart will look
different. For this reason it is just as well to differentiate the patterns by using different names – double-top(or double-bottom) in 3-box reversals and semi-catapults
in 1-box reversals. (P116)
Whereas there is only one version of the 3-box double-top pattern(Figure 3-1), there can be many different variations of the equivalent
1-box semi-catapult pattern(Figure 3-3). This is because there are a number of ways in which the price can oscillate before breaking out. The essential
ingredient, however, is that there must be an advance, which is pushed back, then at some stage - the catapult point marked with the arrow - the price
breaks above the highest column in the pattern. (P117). Note the term “catapult point” is used in this context in 1-box reversals only.

Whereas there is only one version of the 3-box double-bottom pattern (Figure 3-4), there can be many different variations of the equivalent
1-box semi-catapult pattern (Figure 3-5). This is because there are a number of ways in which the price can oscillate before breaking out. The essential ingredient, however, is that
there must be an decline, which is pushed back up, then at some stage - the catapult point marked with the arrow - the price breaks below the lowest column in the pattern. Note the
term “catapult point” is used in this context in 1-box reversals only.
Patterns in in 3-box reversal charts

Double(triple, multiple)-top and double(triple, multiple)-bottom --- continuation as well as reversal patterns in 3-box reversal charts

In 3-box reversal charts, it is important to note that double-top and double-bottom patterns can be either a continuation pattern or a reversal pattern. That
is to say, they can occur either as
i. a continuation pattern after a pause during an uptrend/downtrend, or
ii. a reversal pattern at the end of a trend, thereby reversing the previously existing trend. (P118 – format changed a bit here)

There is no distinction between the two other than that continuation patterns shown in Figure 3-1 and Figure 3-4 comprise at least 3 columns, while
reversal patterns shown in Figure 3-6 and Figure 3-7 comprise at least 4 columns, as seen below. (P118 – format changed a lot here)

This is simply because

i. a continuation pattern requires that the same column type (X or 0) leaves the pattern as entered it. Therefore, a column of Xs entering the pattern leads
to a reversal of a single column of Os, which in turn leads to a second column of Xs leaving the pattern in the direction the pattern was entered. The same
applies to a double-bottom pattern where a column of Os enters and a column of Os leaves after a single reaction column of Xs.
ii. a reversal pattern requires that the column type leaving the pattern is the opposite to that entering the pattern. Therefore, a column of Os entering the
pattern would be reversed by a column of Xs, followed again by a third column of Os and finally by a fourth column of Xs leaving the pattern in the
direction opposite to the direction in which the pattern was entered. Thus a minimum of 4 columns are required. The same applies to a double-bottom
pattern where a column of Xs enters and a column of Os leaves. (P118 – format changed a lot here)

The buy and sell signals are the same, except that the buy and sell signals generated from a continuation pattern are more reliable because they are in the
direction of the prevailing trend. Reversal signals, on the other hand, are a complete change of mood and may initially be unreliable, or at least should be
treated with caution. (P118 – format changed a lot here)
Patterns in 1-box reversal charts
Reversal patterns in 1-box reversal charts

In 1-box charts, continuations and reversals have distinct, seperate patterns.

i. Reversal pattern is called the fulcrum and can take many forms. The full catapult that accompanies a fulcrum completes the reversal.
ii. Continuation patterns are called semi-catapults. (P120 – format and wording changed here)

For a reversal to occur, there must be a move into a pattern and a move out in the opposite direction. As already seen, in Figure 3-6 and Figure 3-7 above,
this is quite straightforward in 3-box charts, but in 1-box charts there are many variations, as shown in Figure 3-8 below. (P120 – format and wording changed
here)

The patterns shown in Figure 3-8 above all translate into reversal (they are reversing previous bear move down of O’s into a bull move up of X’s) double-top patterns
in 3-box charts and this illustrates how many more variations there are in 1-box charts. 1-box charts issue buy signals when the price breaks above the
high X in the pattern, in Fig 3-8 above. They give sell signals when the price breaks below the low 0 in the pattern, in Fig 3-5 below. (P120)

In 3-box charts there is always a column in the opposite direction between the breakout column and the previous column in the same direction. This
means that the minimum number of columns in a double-top or bottom pattern is three. This is not the case with 1-box charts, the reason being that these
can have an X and 0 in the same column during the one-step-back process as discussed on page 62. Every time there is a onestep-back in an uptrend,
there will be two Xs adjacent to one another. If the trend continues, and a second column of Xs breaks above the previous X, this is a reinforcement of the
uptrend and is regarded as a continuation, or weak buy signal, shown by the thin blue lines in Figure 3 -9.It is more a case of 'all is well' signal rather than
'act now' signal. (P120)

Continuation patterns in 1-box reversal charts

As the trend matures, it will eventually encounter resistance and some sideways congestion will occur. The breakout of this sideways congestion is called
a semi-catapult and is regarded as a strong buy, shown by the thick blue line, in Figure 3-9, below. The semi-catapult, as seen already, is in most cases
equivalent to a double-top buy signal in a 3 -box reversal chart. (P120)

Figure 3-9 showing strong buy signals called semi-catapults, in dark blue and weak buy signals, in light blue, during an uptrend in a 1-box reversal chart.
(P121 format and words changed)

Figure 3-10 showing strong sell signals called semi-catapults, in dark red and weak sell signals, in light red, during a downtrend in a 1-box reversal chart.
(P122 format and words changed)

What defines a pattern as a semi-catapult, and therefore adds to its strength, is white space: unfilled boxes across the top of the pattern. (P121). Signals
may be graded according to the width of the semi-catapult. A simple 3 column semicatapult is not going to be as strong as a 6 column one (P122).
Triple-top and triple-bottom patterns in 3-box reversal charts continue from p123

Explain how this adds to strength of patteren in 3-box reversal charts. Then explain how wider semi-catapults with more white space (box) acts as
stronger signal in 1-box reversal charts.

Add this here..The author has all this info scattered all over the book

What defines a pattern as a semi-catapult, and therefore adds to its strength, is white space: unfilled boxes across the top(during bull trend or unfilled
boxes across the bottom during bear trend)of the pattern(p121). Signals may be graded according to the width of the semi-catapult. A simple 3 column
semicatapult is not going to be as strong as a 6 column one(p122).

And author contradicts himself on page 125 thus…

In 1-box charts there is no distinction between the patterns as there is with 3-box double-top/ bottom and triple-top/bottom patterns. The only difference is
that the 1-box continuation semi-catapults and 1-box reversal fulcrums are wider, as shown in Figure 3-13.

I believe the prior statements made in pp 121 & 122, to have more validity. Because the victor after a long drawn out battle that finally gets resolved one
way or the other would prove stronger, logically.