Forex Point and Figure charts

Point and Figure Chart

Box Size: *

How to Read the Chart

Point & Figure charts consist of columns of X's and O's which show an uptrend or downtrend in the price respectively. The numbers and letters in the chart represent the beginning of a month (e.g. 9 for September, A for October, etc.) To eliminate minor price fluctuations, P&F charts define a minimum price movement called Box size. If the price rise or fall is less than the box size, it is not indicated on the chart. A column change from X to O or vice versa happens when the prices reverse in the amount of "Reversal" size (typically 3) multiplied by Box size.

For example, in the P&F chart for EUR/USD, if the Box size is 30 pips (indicated with B:0.0030), and Reversal size is 3 (R:3) and we currently have an uptrend (column of X's), a price increase of more than 30 pips over a period of time will add more X on top of the column while a price decrease of more than 90 pips will reverse the trend and create a column of O's corresponding to the amount of fallen price.

* - Please note that trend lines can be drawn differently depending on the user.

Note: These charts are based on 3-hour closing prices (ask and bid average) over the last 18 months.


 

This is for general information purposes only - Examples shown are for illustrative purposes and may not reflect current prices from OANDA. It is not investment advice or an inducement to trade. Past history is not an indication of future performance.

Trading FX and/or CFDs on margin are high risk and not suitable for everyone. Losses can exceed investment.