Understanding the Point and Figure Chart

By Jeremy du Plessis CMT FSTA

Point and Figure Chart Analysis: Technical Indicators

All the charts discussed so far have been an arithmetic Point and Figure chart, where the box size is the same throughout the chart.  However it is possible to draw log scale charts where the value of the box increases as the price rises ensuring constant sensitivity throughout the chart.

Log scaling is achieved by setting the box size to a percentage instead of a number of points.  This ensures the percentage change from one box to another remains constant, but the box value at each price varies. 

A log scale Point and Figure graph is ideal for longer-term analysis.



Return to the

Elliott Wave Theory

to Homepage

Stock Market Trading





Point and Figure Charting

Contents Index

Related Pages

The Definitive Guide to Point and Figure

by Jeremy du Plessis



Kennys Technical Analysis 

Kennys Elliott Wave Analysis

Kennys Elliott Wave Analysis is my trading plan for the week ahead with regular updates.

Technical analysis reports using Elliott waves, chart patterns, trend trading strategies, Hurst cycles and other stock market time cycles analysis.

Kennys Elliott Wave Analysis



Point and Figure Chart Technical Indicators

Many users of Point and Figure are unaware that it is possible to draw moving averages, Bollinger bands and technical indicators on a Point and Figure chart, because it is assumed that all these require the input of a time period. But, P&F charts advance as columns change from X to O, so moving averages and Bollinger bands can be calculated on the number of columns rather than on the number of time periods.

The Point and Figure graph advances as columns change from X to O, so moving averages and Bollinger bands can be calculated on the number of columns rather than on the number of time periods.


Figure 8 Euro 0.0075 x 3 Point and Figure chart with 10 column Bollinger bands
Figure 8  Euro 0.0075 x 3 Point and Figure chart with 10 column Bollinger bands


Figure 8 shows a 0.0075 (75 pip) x 3 Point and Figure of the Euro with a 10 column moving average and Bollinger bands 2 standard deviations away from it.  This has opened up a whole new area of Point and Figure analysis, where traditional time series chart tools are being used in the same way on P&F charts.

Point and Figure graphs are essential tools for any technical analyst.  Anyone serious about using technical analysis for trading and investing should ensure that they are familiar with Point and Figure charts and their analysis.

Jeremy du Plessis

Jeremy du Plessis CMT FSTA is head of Technical Analysis at Updata Ltd based in London.  He is a member of the Market Technicians Association (MTA) and American Association of Professional Technical Analysts (AAPTA) in the US, as well as a Fellow of the Society of Technical Analysts (STA) in the UK.  He is a regular speaker on Point and Figure at international conferences and seminars.  He is the author of The Definitive Guide to Point and Figure, first published by Harriman House in 2005 with a fully revised second edition published in 2012.


Return to Understanding Point and Figure Charting Part 1     Previous: Part 3



The Definitive Guide to Point and Figure: Jeremy du Plessis

The Definitive Guide to Point and Figure by Jeremy du Plessis

A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method

Format(s): Hardback

ISBN(s): 9780857192455

Published: 28 September 2012

Pages: 540

Edition: 2nd

Publisher: Harriman House




John Murphy Video (90 Min)

Let John Murphy guide you through his thought process in selecting markets to trade, in this Free 90 min video. This classic video is still one of the most insightful you are ever going to see on investing and trading.

Among Other Free Videos Available
  • Using Pattern Probability to Trade with the Trend: Curtis Arnold
  • Market Wizard Insights: Jack Schwager
  • Options - Learn The Greeks: Ron Ianieri
Watch John Murphys "Applying Technical Methods to Today's Trading" for Free.

Find the Best Stocks to Buy




Free Guide

Elliott Wave PDF


Free to download, the Traders Day Trading free Elliott Wave Theory PDF quick start guide. Download it free now for a quick overview of the basics.

It is a handy reference guide to the basics of the wave patterns and wave formation.





Search Traders Day Trading

Stock Market Trading Basics


Technical Analysis Guide


Learning About The Stock Market