What is a point & figure chart?

Point and figure charts are a way to visualize price movements and trends in an asset without regard to the time that passes. P&F charts use columns consisting of stacked Xs or Os, each representing a set amount of price movement. The Xs illustrate rising prices and the Os represent falling prices.

What is a point-and-figure (P&F) chart?

Point-and-figure (P&F) charts track only price changes and ignore time, which makes it easier to identify significant support and resistance levels using a series of 'X's and 'O's. Double tops and double bottoms are the simplest trade signals on a P&F chart.

What is point and figure charting & why is it important?

Understanding volume and other technical indicators in conjunction with point-and-figure charting is important for generating successful trading strategies. By studying point and figure charts, traders can identify resistance and support levels by looking for patterns of ‘Xs and ‘Os that indicate a potential reversal in price movement.