Point & Figure Chart

Point and figure draws a column of Xs while price is rising by at least one box, and a column of Os while it is falling. A new column starts only after a reversal of a set number of boxes, classically three. The horizontal axis is not a calendar.

Box size sets the resolution. Reversal amount sets how far price must retrace before the column flips. Classic counts project a target by multiplying the width or height of a congestion by the box size. Those counts are a method, not a promise.

Alternating columns of Xs and Os, with no time scale along the bottom. A long column means a large directional move in box units.

A break above a prior column of Xs is the classic point-and-figure buy signal. Double-top and triple-top breaks are named versions of that rule.

A break below a prior column of Os is the classic sell signal. Support and resistance are horizontal because only price, not time, is plotted.

The chart is used for objective breakouts and for removing the clock from the picture. It will not show an intraday wick that failed to reverse a box.

Mixing box sizes when you compare two charts, and treating a vertical count as a fundamental price target.

Time-based events, such as an earnings bar, are invisible until the price move fills boxes. The method is only as stable as the box and reversal settings.