Point and figure chart

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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
References in periodicals archive ?
They include the basic principle of the trend, the history of technical analysis and its controversies, and move to markets and market indicators (Dow theory, sentiment, measuring market strength, temporal patterns and cycles, flow of funds) trend analysis (chart construction, breakouts, stops, retracements, moving averages) chart pattern analysis (patterns in bar charts, point-and-figure charts, short term patterns), trend confirmation, other technical methods and rules (cycles, the Elliot wave theory, the Fibonacci sequence), selection, and system testing and management, Each chapter includes review questions and summaries and appendices include material on basic statistics, types of orders and trader terminology.