Point and Figure

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Understanding Point and Figure Chart Type

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Point and Figure chart type is a chart that plots price movements without taking into consideration the time period. Point and figure charts are composed of a number of columns that consist of a series of stacked Xs or Os. A column of Xs is used to indicate a rising price, while Os represent a falling price. New Xs or Os are added to the chart once the price changes by more than a predefined amount. Once the price moves to the opposite direction by more than a predefined amount, a new column is plotted.

Selecting Point and Figure Chart Type

To create a new chart:

  1. Open the Format Instrument window by one of the following methods:
    • Click the New Chart Window New Chart.png icon on the Main toolbar; or:
    • Use the Insert key on the keyboard; or:
    • In the main menu select File, then point to New and click New Chart Window.
  2. Select the Instrument tab.
  3. Select a data feed from the Data Source list.
  4. Select a symbol from the list of available symbols in All Symbols tab, or use the category tabs to list only a particular category of symbols; the list can be sorted by any column, in ascending or descending order, by clicking on the column header. If you can’t find a symbol, see Adding Symbol(s) to Symbol List section.
  5. Select the Settings tab.
  6. Select Point and Figure from the Chart Type list.
  7. Enter the Box Size, Reversal and Resolution in the corresponding boxes.
  8. Select High/Low Range or Close input from the Input list.
  9. Select Break on Session if you want to see the session breaks.
  10. Double-click the symbol, or click OK, to create a chart with the default settings.

Selecting Point&Figure Chart Style

Chart style can be selected from the Format Instrument window:

  1. Open the Format Instrument window by one of the following methods:
    • Click the Format Instrument icon on the Chart Analysis toolbar; if the Format Objects window appears, select the symbol and click the Format button; or:
    • Position the mouse pointer over the symbol's data series; double-click once the Pointer Pointer.png changes into a Hand Hand.png; or:
    • Position the mouse pointer over the symbol's data series; once the Pointer Pointer.png changes into a Hand Hand.pngf, right-click and then click Format 'Symbol Name'; or:
    • Right-click on an empty area of the chart and then click Format Instrument; if the Format Objects window appears, select the symbol and click the Format button; or:
    • Select Format in the main menu and click Instrument; if the Format Objects window appears, select the symbol and click the Format button.
  2. Select the Style tab.
  3. In the Chart Style section click on the component element to be changed.
  4. In the Color column select one of the standard 40 colors from the palette box, or click the Other button to create custom colors.
  5. From the Width list select a width of the body border and the wick.
  6. To apply the most recently selected component's style to all components, click the Apply to All Components button.
  7. To display the Last Price Marker select the Last Price Marker check box, or clear the box to hide the marker; the color of the marker is the same as the color of the Down component.
  8. To use these style settings for all new charts of this type, select Use as Default check box.

Auto trading orders on Point and Figure Chart Type

There are some differences between Regular and Point and Figure chart types with regards to order generation in real time and backtesting.

Backtesting and Data Playback

Type of the strategy Regular Chart Type Point and Figure Chart Type
Buy next bar at market Order is placed on the Open of the next bar. Order is placed on the Open of the next column.
Buy this bar at close Order is placed on the Close of the current bar. Order is placed on the Close of the current column.
Price orders Order is placed either on the Open of the next bar (if it is guaranteed to be filled) or intra bar at Stop or Limit prices. Order is placed either on the Open of the next bar (if it is guaranteed to be filled) or intra bar at Stop or Limit prices.

Real-Time simulation

Buy next bar at market Regular Chart Type Point and Figure Chart Type
Buy next bar at market Order is placed on the first tick of the new bar, i.e. on the Open of the next bar. Order is placed on the Open of the next column, not on the first tick but only when column’s status turns from in-progress into fixed*.
Buy this bar at close Order is placed on the last tick of the bar, i.e. on the Close of the current bar. When the status of the column turns from in-progress into fixed*, the order is placed at the Close price of the previous column.
Price orders Order is placed at the price of the first tick that satisfies the Stop and Limit conditions. Order is placed either on the last closing tick of the column or on the Open of the next bar after the column has been closed (if it is guaranteed to be filled) taking into account Stop or Limit conditions.
* After the resolution time frame has passed.

Auto Trading

Type of the strategy Regular Chart Type Point and Figure Chart Type
Buy next bar at market When the first tick of a new bar comes, the market order is sent to the broker. When the next column’s status turns from in-progress into fixed*, a market order is sent to the broker
Buy this bar at close When the last, closing tick comes, the market order is sent to the broker. When a column’s status turns from in-progress into fixed*, an order is placed at Close price of the previous column.
Price orders When the auto trading is on, a price order is sent to the broker. When the auto trading is on a price order is sent to the broker.
* After the resolution time frame has passed.

To learn how Intra-Bar Order Generation and Bar Magnifier work on Point and Figure Chart Type, see this page