Tues Point & Figure Chart
The point & figure (P & F) chart is somewhat rare. In fact, most charting services do not even offer.
This chart plots day-to-day increases and declines in price: increases are represented by rising stack of "X" and, while decreases are represented by a declining stack of "O" s.
This type of graph is traditionally used for intraday charting (a stock chart for just one day), mainly because it can be long and tedious to create a "P & F chart manually over a longer period of time.
The idea of P & F charts is that they help
to filter out less significant price
movements and to focus on the most
important trends. Below is an example of P & F
scheme AT & T:
Two attributes affect the appearance of P & F chart: box size and reversal amount. We will not get into these factors in detail.
Now that I have introduced three different types of charts used by technical analysts, let's look at various indicators.
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