May, 2012 4:50 AM
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Point and Figure Charts
Point and Figure Charts plots day-to-day price movements by a series of Xs or Os. A column of Xs represents a rising price, while Os illustrate a falling price.
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The point-and figure chart is widely popular for detecting a share price trend. To an outsider this chart could be mistaken for a game of noughts and crosses. Traders use these charts to identify the points or ‘breakouts’ where there is a noticeable change in the numbers of buyers and sellers – hence signalling a possible shift in price in the future..
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