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A Point and Figure Chart is an unusual graph in a trading terminal which doesn’t account for the time and shows only significant price changes. The point and figure was one of the first ever graphs, coming about in the 1920s. Back then the graph was made by hand. Today it is not very popular amongst traders who want to use new methods of analysis. Price movements upwards are marked as X on the graph and movements downwards are marked as O, with the time such movements occur not accounted for. When there is an upward trend, the graph will be marked X, no matter how much time passes. A point and figure chart allows traders to see the important price fluctuations, ignoring small price changes. This graph is interesting for those who prefer to apply long-term analysis to their trading.


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