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5. Technical Analysis > Point and Figure Charts

Point and Figure Charts

Resistance, support, and the direction of price action are easy to identify in point and figure charts once you learn to interpret them.

Growing from Charles Dow’s theories about supply and demand, point and figure (P&F) charts are easy to create and maintain even without a computer. In fact, P&F charts fell from favor when handheld calculators and home computers made other types of charts easier to produce. However, some P&F chart features have attracted renewed interest, particularly from intermediate-term traders. Although their appearance might be startling at first, P&F charts provide advantages over other charts, such as emphasizing the direction of price action, and making resistance and support levels easier to identify.


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