What makes p&f charts so different?
There is no doubt that point & figure charts look very different from the now more common chart formats such as bar charts but with a little effort one quickly appreciates their simple yet effective approach point & figure charts shout where other charts merely stutter. Notable features are as follows: • No time axis – unlike bar or candlestick charts, p&f charts have no horizontal time axis only price change generates chart action. • The 3 Box reversal rule – P&F charts will not change direction (i.e. from a column of Xs to a column of Os) unless the price moves more than 3 boxes (or unit of price) in the opposite direction. There can therefore be no fewer than three boxes in a column. This reversal technique is one of the key strengths to p&f charting as it effectively filters out minor fluctuations to reveal patterns. • Semi log scale – the Y axis scale on a p&f chart is graduated to allow one to view and compare similar signals for different prices stocks. • Clear cut signals what
