Do you want to see something very exotic? Welcome to Point & Figure Charts
Old School and still Cool, Point and Figure Charts are used by Market Makers.
This is a type of chart that you probably have never heard of before.
They are however quite useful and you would be required to learn them if you wanted to become a certified Technical Analyst.
What are Point and Figure Charts (P&F)
Point & Figure Charts are very unusual as they feature no timeline along the bottom horizontal axis. The Chart is made up only of price swings.
The vertical price bar is arithmetic and shows only units of the price. An “O” is plotted if the price moves down a whole price unit (for example 50 cents).
Then when the price changes direction and starts to move upwards an “X” is marked in each box.
This filters out smaller price moves and enables us to focus on trend quality. Trend lines are always plotted either horizontally or at 45-degree angles.
P&F charts are an excellent tool for doing price target calculations. Simple to learn and interpret, few price patterns to learn.
Learning this type of charting can be easiest when performing the charting by hand. That means you marking the “X” and “O” on a piece of paper. This can also be very time-consuming. Few services offer Point and Figure Charts.