Uploaded by : DreamGains Financials, Posted on : 23 Sep 2016
On point and Figure Charts X’s represent up movements which are called boxes.
On point and Figure charts O’s represent down movements which are called boxes.
Box-size is pre-determined either as a price or a tick.
Price action is represented by the Y-axis.
A column of X’s or O’s represent a supply/demand.
Reversal plot takes place when the price action is changed by a number of boxes. (3-box).
Sensitivity of the chart is altered by varying the box size.
Price Changes less than the pre-selected price/tick size is ignored.
There is no time on horizontal axis; time is not represented with the PF.
There is no volume representation.
Gaps are not recorded. If the price gaps away all the boxes are filled in.
Catapult is defined as a break out and pull-back into the pattern.
Trendlines are vital part of 3 box reversal analysis and are drawn at a 45 degree angle as a Bullish Support (up trendline) and a Bearish Resistance (down trendline). These trend lines are drawn from an important low or high point of the chart.
The 1st Point & Figure charts used a reversal amount equal to 1 box size. These are called 1-box reversal charts to distinguish them from the newer and simpler 3-box reversal charts.
