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Discussion of article "Indicator for Point and Figure Charting" - page 3

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Indicators: Point and Figure

newdigital, 2013.09.12 16:29

Point & Figure Charting

Point & Figure Charting reduces the importance of time on a chart and instead focuses on price movements. Point & Figure charts are made up of X's and O's, X's being new highs and O's being new lows. There are two inputs to a Point & Figure chart:

  1. Box Size: The size of movement required to add an "X" or an "O". For example, a stock at a price of $20 may have a box size of $1. This means that an increase from $20.01 to a high of $21.34 means another "X" is added. If the high price only increased to $20.99, then another "X" is not added because the stock didn't close another box size ($1) more.
  2. Reversal Amount: The size of reversal before another column is added to a Point & Figure chart. To illustrate, if the reversal amount is $3, then the $20 stock would have to fall down to $17 before a new column (in this example of O's) would be started.

One of the main uses for Point & Figure charts, and the one emphasized in this section, is that Point & Figure charts make it easier for traders to see classic chart patterns. In the chart below of the E-mini S&P 500 Future, the Point & Figure chart emphasized support and resistance lines as well as areas of price breakouts:


Again, the Point & Figure chart makes it easy for traders to see the double bottom pattern below in the chart of the E-mini S&P 500 Futures contract:


The e-mini chart above illustrates the two bottoms of the double bottom pattern, as well as the confirmation line that is pierced, resulting in a buying opportunity.

Point & Figure is a very unique way to plot market action. The strongsuit of Point & Figure charting is that it eliminates the element of time and focuses on what is truly important - price

I tried and understanded that the error of color  the columns is related to the definition of the columns

pejman-m:

Instead of one single column,it's better that columns seperate with continous blocks,and all column stick together.(one bearish column stick next bullish column and etc.)

 

 

  

I tried and understanded that the error of color  the columns is related to the definition of the columns

it is just what I was looking for, is there a possibility that you can add to the code what is needed to have it as the main graph, operate directly and not in a separate window.
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