Point and Figure Charting

Point and Figure charting is a method used in financial markets to analyze price movements of stocks or commodities without focusing on time. It uses columns of X's to represent rising prices and O's for falling prices. Unlike traditional charts, which plot price against time, Point and Figure charts emphasize the price changes only when they reach a certain threshold, filtering out minor fluctuations. This helps traders identify trends, support and resistance levels, and potential breakout points, making it a clear tool for visualizing price patterns and making informed trading decisions.