Forex Point and Figure charts
Point and Figure Chart
How to Read the Chart
Point & Figure charts consist of columns of X's and O's which show an uptrend or downtrend in the price respectively. The numbers and letters in the chart represent the beginning of a month (e.g. 9 for September, A for October, etc.) To eliminate minor price fluctuations, P&F charts define a minimum price movement called Box size. If the price rise or fall is less than the box size, it is not indicated on the chart. A column change from X to O or vice versa happens when the prices reverse in the amount of "Reversal" size (typically 3) multiplied by Box size.
For example, in the P&F chart for EUR/USD, if the Box size is 30 pips (indicated with B:0.0030), and Reversal size is 3 (R:3) and we currently have an uptrend (column of X's), a price increase of more than 30 pips over a period of time will add more X on top of the column while a price decrease of more than 90 pips will reverse the trend and create a column of O's corresponding to the amount of fallen price.
* - Please note that trend lines can be drawn differently depending on the user.
Note: These charts are based on 3-hour closing prices (ask and bid average) over the last 18 months.