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Point and Figure Charts are charts that contain columns of X's and O's on a grid of square boxes. Columns of X's alternate with columns of O's. The X's represent a period of rising prices while the O's represent a period of falling prices.
For details on how P&F Charts are constructed and how they are interpreted, please see our ChartSchool article on P&F Charting.
Here is an example of a Point and Figure chart:
In addition to the basic price quote at the top of the chart, this header area also lists any new P&F Patterns that appear on the chart. For more information on the P&F chart patterns that we automatically detect on our P&F charts, please see our ChartSchool article on P&F Pattern Alerts.
The current Price Objective can also be shown in the header area at the top of the chart. P&F Price Objectives are often misunderstood and misused. We recommend you learn more about how P&F Price Objectives are calculated and used correctly by studying our ChartSchool article on Price Objectives.
Just like SharpCharts are created and customized in the SharpCharts Workbench, P&F Charts are created and customized in the P&F Workbench.
P&F Charts can be created for any ticker symbol in our database. There are a number of ways to do this:
Once the chart has been loaded in the P&F Workbench, you can change the settings for the chart just as you would on the SharpCharts Workbench, using the controls above and below the chart.
After making any changes to the settings, be sure to press “Update” (or the Enter key) to see the new chart.
Above the P&F Chart, you will find controls for setting the ticker symbol and the data bar period. If you are a StockCharts member, you will also see controls for saving your chart in a ChartList, as well as for retrieving previously saved charts. All of these controls work just as they do on the SharpCharts Workbench.
Immediately below the chart is a line of “Action Links” which allow you to perform a variety of actions:
ChartStyles are templates - collections of settings - for charts. Once you have a ChartStyle, you can apply it to any ticker symbol to create a chart that uses those settings.
Currently, the P&F Workbench does not support StyleButtons like the SharpCharts Workbench does. The P&F Workbench has predefined ChartStyles and you can create your own custom default ChartStyle as well.
Our predefined P&F ChartStyles can be accessed via the ChartStyles dropdown. Just select the style you want and it will immediately be applied to the current chart.
Whenever a new chart is created from just a ticker symbol - for example, when you use the “Create a Chart” bar to create a new P&F Chart - we apply the “Default” P&F settings to that ticker symbol. You can change those settings if you want by clicking on the “Save As Default” link.
Note: Your Default P&F settings are stored in a special “cookie” inside your web browser.
To apply a P&F ChartStyle to all the other charts in a ChartList, you must first display one of the charts in the ChartList. Set it to the ChartStyle you want, using the instructions above. Then, click the “Apply Style To All” button at the bottom of the P&F Workbench. This will change all the other charts in the ChartList to match the one you are currently displaying.
Below the chart, you can change several Chart Attributes, those being the settings that affect the entire chart. These include:
<box blue> Note: P&F Price Objectives (also called “P&F Counts”) can be enabled using the “Price Objective” dropdown. Please note that Price Objectives are often misunderstood. Please read our ChartSchool article on Price Objectives carefully before evaluating them. </box>
The Chart Scaling section allows you to change the conditions which cause reversals on the P&F chart. (Please see our ChartSchool article on P&F Scaling and Timeframes for details on choosing these settings.)
The Method dropdown allows you to select the scaling method you want to use. Depending on the scaling method selected, one or more parameter boxes will appear to the right of the dropdown.
Here are scaling methods we support:
|Price Range||Box Size|
|0.25 to 1.00||0.125|
|1.00 to 5.00||0.25|
|5.00 to 20.00||0.50|
|20.00 to 100||1.00|
|100 to 200||2.00|
|200 to 500||4.00|
|500 to 1,000||5.00|
|1,000 to 25,000||50.00|
|25,000 and up||500.00|
Regardless of the method chosen, the Reversal field is where you enter the number of boxes that a stock needs to move in the opposite direction to warrant a column reversal. The default value is 3 boxes.
There are several technical overlays that you can add to a Point & Figure chart using the dropdowns and parameter boxes in this section. You can add up to 6 overlays to a chart.
Note: The indicators are based on the X and O levels on the Point & Figure chart. In other words, they are based on P&F prices, not on the daily price/volume of the actual security. Do not expect indicators on the P&F charts to look the same as indicators on a daily bar chart.
Q: What do the numbers and letters on P&F charts represent?
A: Numbers and letters on the chart indicate when a new month has begun. For instance, the number “2” shows where February started. The letters “A,” “B” and “C” are used to indicate the beginning of October, November and December.
Q: Can I annotate a P&F chart?
A: P&F charts cannot be annotated.
Q: Why did I not see a reversal today?
A: When the current column is an X-Column (rising), another X can be drawn and ignore the low.