Point and Figure: Difference between revisions
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===Understanding Point and Figure Chart Type=== | ===Understanding Point and Figure Chart Type=== | ||
[[File:PFChart1.png|right|PF]] 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. | |||
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=== | ===Selecting Point and Figure Chart Type=== |