Point-and-Figure (P&F) Chart

A Point-and-Figure (P&F) chart is a time-independent charting method that records only significant price movements using columns of X's (rising prices) and O's (falling prices), completely ignoring time and volume. A new X is added when the price rises by a predetermined box size, and a new O is added when it falls by the same amount. A column reversal — switching from X's to O's or vice versa — occurs only when the price moves in the opposite direction by a specified reversal amount (typically three box sizes). By filtering out minor price fluctuations, P&F charts highlight the pure supply-demand balance, making support and resistance levels, trend lines, and classical chart patterns like double tops, triple bottoms, and catapults particularly clear and unambiguous. P&F charts provide price targets using specific counting methods — both the horizontal count and the vertical count — that are not available in time-based charting methods. In Indian equity markets, P&F charts are used by a dedicated community of technical analysts for medium to long-term price target generation and trend identification in Nifty 50 constituents and broader market indices.