Point & Figure Chart

A Point and Figure (P&F) Chart is a price-action charting technique that records only significant price movements — ignoring time — using columns of X's (rising prices) and O's (falling prices). A new X is added when the price rises by a defined box size; a new O is added when it falls. A new column begins only when the price reverses by a set reversal amount (typically three boxes). P&F charts eliminate minor fluctuations and time-based noise, making it easier to identify long-term support, resistance, and breakout patterns. Count-based price targets can be derived from the chart's column widths. P&F charts have a long history in classical technical analysis — particularly in identifying major trend reversals and measuring the potential magnitude of price moves after a breakout.