Point And Figure Chart
Point And Figure Chart. Point and figure charts are composed of a. Hence, they were simply referred to as "Figure Charts".
The larger the box size, the fewer X's and O's that will be charted. Out of which, we will learn Point. The P&F chart is made up only of price swings.
Instead it plots price against changes in direction by plotting a column of Xs as the price rises and a column of Os as the price falls.
Support levels are price levels at which large numbers of buyers are expected to enter the market.
These types of chart are best for traders who use technical analysis to predict price movements in forex trading markets as they can visualize trends, reversals, areas of support and resistance, etc. Hence, they were simply referred to as "Figure Charts". The figure chart, which showed the prices of an asset was the first to be used.
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Thomas Branstetter
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