Point and Figure Charts

Point and figure charts - charts based on price without time. Unlike most other investment charts, point and figure charts do not present a linear representation of time. Instead, they show trends in price.

Increases are represented by a rising stack of Xs, and decreases are represented by a declining stack of Os. This type of chart is used to filter out non-significant price movements, and enables the trader to easily determine critical support and resistance levels. Traders will place orders when the price moves beyond identified support/resistance levels.