How to read a Point & Figure chart
Stocks
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Let's learn how to read a Point and Figure chart on QuantLogIQ. We'll use Reliance as our example.
Steps:
1. At the top, the P&F signal shows which way the latest column is moving. Next to it, RSI and ADX describe momentum and trend strength.
2. Now the chart. Each column of X's is a rising phase, and each column of O's is a falling one. A new column starts only when the price turns by three boxes, so small daily noise simply drops out.
3. The green boxes mark confirmed breakouts, where the price beat its previous high. Red boxes are breakdowns below the previous low.
4. And this tag on the right shows the latest closing price and its date.
That's the basics of reading a P&F chart. In the next videos, we'll change its settings and add trendlines.
Steps:
1. At the top, the P&F signal shows which way the latest column is moving. Next to it, RSI and ADX describe momentum and trend strength.
2. Now the chart. Each column of X's is a rising phase, and each column of O's is a falling one. A new column starts only when the price turns by three boxes, so small daily noise simply drops out.
3. The green boxes mark confirmed breakouts, where the price beat its previous high. Red boxes are breakdowns below the previous low.
4. And this tag on the right shows the latest closing price and its date.
That's the basics of reading a P&F chart. In the next videos, we'll change its settings and add trendlines.