Dictionary Home »
Invest » point-and-figure chart
point-and-figure chart investment & finance definition
A technical analysis tool that has no time line at the
bottom of the chart but instead indicates shifts in the direction of price
movements. Entries are made when a price change occurs. Xs represent price
increases and Os represent price declines. To simplify matters,
point-and-figure charts indicate when a security should be bought when the
current column of Xs rises one box higher than the top box in the immediately
prior column of Xs. A sell signal occurs when the current column of Os falls
one box lower than the lowest O in the immediately prior column of Os.
See point-and-figure chart in Wall Street Words
In technical analysis, a chart pattern, peculiar to securities, in which only the significant value changes of a security, a futures contract, or a market average are recorded. The vertical axis represents price, but, unlike nearly all other charts, no variable, including time, is plotted on the horizontal axis. Entries on a point-and-figure chart are made only when a variable changes by a predetermined amount, for example, by one point or two points. A period of days may pass before an entry is recorded. Compare bar chart, line chart.
point-and-figure
Learn more about point-and-figure chart
