Point and figure charts
The point and figure (P&F) is another type of price charting; the difference is that P&F ignores time. Time is irrelevant; only price matters. Xs and Os indicate price signals. The point and figure chartist uses Xs to illustrate rising prices and Os for falling prices. As long as the price is rising, Xs are added. Os come into play when they are dropping. The decision to start a new column of Xs or Os is based on the market making a price change of a certain amount designated by the technician. This would be a box. The technician also must designate (in addition to the size of each box) what determines a reversal.
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