Final answer:
Point and figure charts, used in financial markets, are least suited to establishing targets. They focus on significant price changes, ignoring minor fluctuations and so do not provide enough insight for setting accurate short-term targets.
Step-by-step explanation:
Point and figure charts are an analytical tool used in technical analysis that is used mainly to track price movements in financial markets. These charts have several uses but they are LEAST suited for establishing targets.
Establishing targets involves predicting future trends and price levels, which is a highly complex process. While point and figure charts can certainly aid in understanding market trends and identifying areas of accumulation or distribution, areas of support and resistance, and breakouts, they are not as effective when it comes to establishing targets.
This is because point and figure charts, by their nature, focus only on significant price changes and filter out minor fluctuations. While this gives a clear picture of the market's direction, it doesn't provide a lot of insight into short-term trends or levels, making it less suited for the purpose of setting precise targets.
Learn more about Point and Figure Charts