Point & Figure Charts

Forex Point and Figure Charts
Charting Methodology and Trading System

Point and Figure has significant advantages over all other charting systems. This method of charting yields its own trading points and is quite simple for any trader to learn and utilize.


You will notice that Point and Figure charts are different from the beginning. They look like no other form of charts. Instead of candlestick bars that are created each increment of time, there are X's and O's filled in on a price grid that are made when the "box" value (# of pips) is achieved by price.

By only updating when Price actually moves eliminates the "time factor" from the charts. Point and Figure as a category, focuses on the breakout trade where Price breaks new ground, the most consistently winning type of trade.

It only takes a few minutes to become a Point and Figure charting expert. The techniques are simple and don't require math or prior knowledge of the Forex market. You just need to learn a few regular patterns and a few concepts to begin practicing live in the market.

Focuses on what really matters: Pure Price Movement

Most other technical analysis is based on a fixed time axis, with a bar per given period of time. This time-based bias can lead to false signals with periods of little or no up or down movement and no price action, or periods or rapid price movement with too much price action stacked together.

A charting methodology and trading system all in one

Not only does Point and Figure charting depict pure price moves, most importantly, it translates directly into a trading methodology producing buy and sell signals.

Has been rigorously tested and it works

Numerous academic studies have been conducted over a span of decades showing the simplicity and benefits of using Point and Figure Charts.

Provides exact decision rules

It provides specific entry and exit points, eliminating the common faults of keeping a bad trade too long or getting out of a profitable trade too soon.

Identifies the major moves

In Forex this is especially important because the markets trend well and often give massive moves in one direction or the other. Using Point and Figure you can stay in a trade while others are jumping out too early.

Works the same for both Long and Short positions

Clear Stop and Profit Targets are easily calculated before the trade, no guessing required.

Add to winning trades and keep loosing trades relatively small

Using the "Pyramiding Technique" you add an additional position with each new signal. Pairs that trend a long way could have several early entry points that become big positive gains. The entries toward the end of the long move tend to have smaller gains, break even or limited losses.

Generates very clear trend lines

In contrast to the typical bar chart and other charting methods, Point and Figure is non-ambiguous about where to place trend lines. Again, no guessing required.

Are you ready to learn how to use Point and Figure charts in Live market action? Get a more accurate view of the Forex markets and their price movement, with Point and Figure charts in our Live 24/5 Online Trade Room.