Point and Figure Chart
A chart that plots columns of Xs and Os for price movement of a set size, ignoring time entirely.
Formula
New X or O is added each time price moves one box size; a reversal requires a move of the reversal amount, typically three boxes
Unit
₹
In depth
Point and figure removes the time axis, so a quiet month occupies no space and a violent day may occupy a whole column — the chart records movement rather than duration. Its two parameters, box size and reversal amount, determine everything the chart shows, and changing them changes every apparent pattern, which is a caution against reading too much into any particular configuration. The format filters small fluctuations by construction, which is the appeal. It is a niche presentation today, kept alive mainly by traders who value its indifference to how long a move takes.
Worked example
With a ₹5 box and a three-box reversal, a rise from ₹500 to ₹520 adds four Xs. A fall to ₹512 adds nothing, since ₹8 is less than the ₹15 reversal threshold; only a fall to ₹505 or lower would start a new column.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Point and Figure Chart” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.