Point and figure chartsdisplay share price changes with no time axis in order to reveal the underlying price movements.
In the point and figure chart, X's represent rising prices, O's represent falling prices. Each X or O represents a unit value (called the box size) chosen by yourself or by the program. Smaller values give more sensitive charts. The chart shows a series of columns of X's or O's. A new X or O is only plotted when the exact price level has been reached. A new column is only started when the price has reversed by your chosen reversal (normally 3) multiplied by the box size.
Because there is no time axis associated with the point and figure chart, the X or O is replaced by the month number if the month changes over the period represented by that box. 1 to 9 represent January to September, A to C represent October to December.
To use a point and figure chart, activate a price chart and select point and figure from the analysis selector in the Analyst's toolbar. Select the box size and reversal and press OK. You can zoom in on the main chart to select the data for the point and figure chart.
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