General TradingP

Point and Figure

A charting method that plots price movements using columns of X's (rising prices) and O's (falling prices) without regard to time. It filters out minor fluctuations and focuses purely on significant price changes, making it useful for identifying support, resistance, and breakout levels.

Example

“A trader uses a Point and Figure chart with a 3-box reversal to identify a bullish breakout above $50/share, entering a long position when a new column of X's surpasses the previous high.”