Point and Figure chart

Every other chart in this workbook plots one mark per period of time, whether or not the price actually did anything interesting. A Point and Figure chart throws that idea out.

It records price movement only, adding a new mark only when the price genuinely moves — no mark is added just because a day, or a week, has passed.

The workbook: a Point and Figure chart "only focuses on the price movements and ignores time and volume. It is widely used for identifying breakout levels and support/resistance zones. It filters out noise and is ideal for long-term trend analysis."

Chapter 15.2 sits this alongside Renko charts as the workbook's 2 time-free chart types, and alongside candlestick and bar charts as time-based alternatives that always print a mark for every period.

Illustrative — a general point-and-figure convention, not detailed by the workbook. Using a fixed Rs 5 price interval to define each new mark, a stock that keeps rising in Rs 5 steps adds a new mark in the same column every time. A stock that trades sideways for weeks, moving up and down within that same Rs 5 band without a net move, would add almost no new marks at all over that period — unlike a bar chart, which prints a new bar every single day regardless of whether the price moved.

Chapter 15.2.4 (Point and Figure Chart) sets this out alongside line, bar, candlestick, Renko and Heikin-Ashi charts in the same chart-types section. Expect a question matching each chart type to what it is best suited for.

• A Point and Figure chart ignores both time and volume, not just time — a common trap is remembering only the time part.
• Do not confuse it with a Renko chart. Both remove time, but Renko uses fixed-size price "bricks," while Point and Figure uses X and O columns — the workbook lists them as separate chart types.