Advanced Point & Figure Charting
Let’s begin by summarizing the basics for a Point & Figure (P&F) Chart.
The settings for P&F Charts can be changed between 2 main settings:
- The intra-day highs and lows for the share price
- Based solely on the closing price for the share price
A column of X’s indicates a rising share price while a volume of O’s indicates a falling share price.
P&F Chart Components
Now let’s breakdown a P&F Chart to make sure all the critical components are understood.
P&F Chart Components Legend
A – Ticker symbol, company name and the exchange that the company is listed on
B – Date, time, opening share price, intra-day high, intra-day low, closing share price, volume, $ change in share price for the day and % change in share price for the day
C – The bullish signal for Caterpillar (CAT) was reversed on March 9, 2017
D – Scaling for almost all P&F Charts should be the traditional 3 box reversal; stocks under $5 are an exception
E – The price objective will be stated in dollar terms in the header section and also identified in color and with a “PO” for price objective under the share price section. There are 2 status for the price objective:
- tentative – means reaching the price objective is in process
- met – indicates the price objective has been reached
F – This column represents the price for the P&F Chart; for the current share price, see G
G – This is the current share price for the company; since this is a column of O’s for Caterpillar, that indicates its share price is heading downwards
H – The company’s current share price activity can be seen in the column on the far right-hand side of a P&F Chart
