Point and Figure Stock Charts Explained Simply. // p&f chart tutorial basics trading strategy video


Point and Figure Stock Charts Explained Simply. // Point and figure chart tutorial, point and figure chart basics, trading point and figure chart strategy, point and figure chart introduction, point and figure charts 101, point and figure chart video, point and figure charts technical analysis david moadel David Modell today I’m going to give you a quick and basic introduction to point and figure charts some people might look at them and think they’re complicated but I’m going to break it down for you and make it really simple and this is just an introduction it’s not everything all right so it looks like tic-tac-toe right well X means that the price went up Oh means that the price went down alright so X means up and all means down and this by the way this is for Apple stock this chart and these charts all come from stockcharts.com all right so X means the price went up Oh means the price went down and time has nothing to do with it by the way nothing on this chart right now tells you how long it took for Apple to go up that’s the exes or how long it took to go down the O’s it just says that it went down and then down and then down then down the down and then up and up and up and up and then down and then up and then down alright so if you don’t mind the fact that time is not really represented all that well on your chart if you’re maybe if you’re a long term or medium term investor then this might be very useful for you so you can eliminate that factor or at least focus more on price movements or price action as opposed to how long it took all right if you’re a maybe a day trader and time is more of a factor for you then this may not be your first choice although it could be depending on your preferences so X means it went up all means it went down now how much did it go up or down well it depends on the price if you’ll notice over here the increments are one dollar it’s one dollar increments below 100 when Apple was below a hundred dollars and if you’ll notice above 100 the increments increase to two dollars so it jumps up one dollar per box these are all boxes so each box represents a dollar and then it’s dollar in one dollar increments here and then above 100 each box represents a two dollar movement in price rather than one dollar okay and I’ll break it down more specifically here’s a chart again from stockcharts.com and as you can see when the price is between twenty dollars then each box represents one dollar of price movement when it’s between a hundred dollars and two hundred dollars each box represents two dollars and so the scale changes or the increments change so it depends on the the price of the stock at that time that that determines the increments meaning how big the boxes are or how much how much they represent alright so let’s go back to the chart here so when Apple was under hundred dollars each movement represented one dollar and so look at these X’s here it was ninety dollars a share and then I move it up to 91 then 92 93 94 all the way up to ninety nine dollars alright and of course it at any given moment it was it was not exactly ninety seven dollars or 98 or 99 all the time you know it was 97 and change 98 and change but these it just kind of keeps it simple for you it rounds it all right so to speak it just kind of rounds it to the you know whenever it reaches a certain price you just you put an X in the box that’s all it is when it reached 97 you put a box you put an X in the ninety-seven bucks when I reach 98 you put an X in that box when it reached 99 you put an X in that box or i should say stockcharts.com did it for you okay so that’s the standard setting it depends on the the price how much each box represents now on the standard settings when the price turns around and goes three boxes in the opposite direction then you move over and make a new column going in the opposite direction okay so down here each box represents one dollar so X means remember X means it was going up and I’m looking at the scale and I know that that means it’s going up one dollar one dollar one dollar all the way up to let’s say in this one in this column it went up to ninety nine dollars maybe a little bit more maybe nine ninety nine dollars and change but not up to a hundred because there’s no air there’s no X here in the hundred box I know it’s a hundred bucks and there’s no X here and I know that it turned around and went three boxes in the other direction okay because there’s no X here the X is stopped so on the standard settings which you can change by the way but on the standard settings as soon as it turns around and goes in the opposite direction at least three boxes then you change the letter from X to 0 or from 0 to X and now you have a new column to the right and you go in the opposite direction so I know that it went in the opposite direction here and now we change it two O’s and look at that it notice that the collet the columns are all at least three X’s or OS because it takes at least three boxes in the other direction to make a new column in a new letter all right so it went from 99 three boxes 123 in the other direction they still drew the O’s for the you know for these boxes because it didn’t just jump three boxes okay it turned around and it traveled three boxes all right it still had to go through 98 and 97 to get to 96 all right so went from 99 turned around and went to 96 which is at least three boxes in the other direction but they still had to plot the the all the O’s on the way to 96 you know it’s they still plotted 98 97 and 96 all right notice there’s no oh here so I know that it it turned around and went back in the other direction back up again at least three boxes so it turned around and went from 96 to 99 but they’re not going to neglect to fill in the fact that it went through 97 and 98 on the way to 99 and it actually went more than three boxes but it has to go at least three boxes in the other direction to make a new column in a you know a new letter all right so it went from 96 or perhaps 96 and change turned around went to 97 98 99 and then went a little further into the hundred box and I know there’s no X here above that and so it turned around and went this way at least three boxes and then it turned around and went this way at least three boxes then turn around went this way and up and notice that above 100 now each box represents two dollars per box two dollars of price movement and so it went to a hundred went to 102 104 106 108 I see it didn’t go to 110 so it must have turned around and went at least three boxes and there it is it went exactly three boxes down to 102 but you know of course they still have to plot the fact that it went through 10 6 and 10 for to get down to 102 and then turn around and went up and down and up and again time is not a factor here it doesn’t say how long it took to go down to 102 dollars a share and then up to 1 16 or 116 and change or whatever it was I say 116 and change because it probably didn’t go exactly to 116 and turn around it might have gone to 117 or 117 and two fifty cents or 117 and 99 cents whatever but it didn’t reach 118 I know that because there’s no box here and it turned around and went this way and then all the way up here and it tells you the current price okay so this tells me since the current price is here it went up and it went down turned around and went down a couple of boxes but not three boxes yet I know that because if it went it turned it went here and then went down two boxes it must not have gone down three boxes because then it would it would be a new column with o’s here alright so hopefully that that’s a lot to take in at once but hopefully that makes sense to you alright so you may have to probably want to study this more now just to give a sense of the passage of time what you can do at least on stockcharts.com you can make sure that hide months is unchecked and then update it and at least it will tell you some idea of the passage of each month it’s not going to tell you every single day that passed but if one is january two is februari three is march april may june july eight is august nine is September they didn’t want to write ten so they wrote a B and C for october november and october november and c is december all right so b is let’s see november see is december and one is january to his februari and so on just to give you an idea of the passage of time here of the months going by and this is 2015 2016 2017 so clearly this is a long-term investors chart this is probably not as useful minute to minute basis for day traders all right and using this chart again helps eliminate the concept of time to a certain extent so you can just focus on the price action and if you can see trend lines very very easily that’s a huge advantage of this method and they’ll even draw it for you here on this website and you can see some trend lines and trend lines are their subjective to a certain extent okay but they’ll draw some ideas for trend lines for you and you can make support and resistance lines for example you can see it bounced off of here this horizontal line four times one two three four so you might call that a resistance line you might call this a support line since it bounced off of here several times you get the idea it’s it’s very easy to make to draw trend lines support lines resistance lines that kind of thing all right so this is a very basic introduction I suggest that you learn more about it on your own if you’d like some help learning about these things or learning about stocks options finance investing and trading in general you can email me at any time my email address is David Modell @ gmail.com thank you so much for watching and listening if you like this video please give it a thumbs up on YouTube and leave comments and please subscribe to my youtube channel so you can receive the latest updates on my financial educational videos thanks a lot and I’ll see you again soon 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15 Replies to “Point and Figure Stock Charts Explained Simply. // p&f chart tutorial basics trading strategy video”

  1. Thanks Dave. I had seen these charts on ST, and hadn't known what I was looking at. Had cued up your sequel, the patterns, and it was suggested I come here. Thanks again.

  2. Thank you for your video! I was SO confused as to how a reversal column can only be drawn once there's a 3 point reversal yet there were boxes that were less than 3 in the column. You draw them in after there's a three point reversal!!!! GEEEZE!!! That was frustrating lol.

  3. the chart you showed that had price range and box size, is it only for Apple or is it a common chart used for all stocks for box size?

  4. Yes David, you've got some babestation music running in the background. That spiced things up a bit. Great vid, tx!

  5. Thanks Mr David. Wonderful video. I haven't gotten used to this technique and I am not an expert in chart reading. Having said that, why should something be so convoluted? Thanks.

  6. This is a great video. I am using it in my own website about this topic here: https://binbitforex.club/%ef%bb%bfmore-regard-point-and-figure-charts/

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