Point and figure chart(redirected from Point and figure charts)
Point and figure chart
A price-only chart that takes into account only whole integer changes in price, i.e., a 2-point change. Point and figure charting disregards the element of time and is used solely to record changes in price.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Point and Figure Chart
In technical analysis, a chart that records only changes in price to a security or derivative. A point-and-figure chart does not account for time. Price is charted along the y-axis, but nothing is measured on the x-axis. The chart is designed as a series of columns of X and O, with X representing a rising price and O representing a fall. A change in price must exceed a certain amount before it is charted, which is designed to filter out noise. As a result, a point-and-figure chart may change several times in a trading day, or not at all.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved