|
P&F charts are based purely on a price movement and do not take time into consideration. Even though the months and years are noted on the chart, the timescale at the bottom is totally dependent on the price changes. The red numbers and letters on the P&F chart mark the start of the month. Numbers 1 through 9 mark January through September, while A, B and C mark October, November and December.
Click this image for a live version.
The default settings for P&F charts often provide a long-term perspective (over one year). Users can change this perspective by reducing the box size. The default box size for the S&P 500 is 10 points and produces a chart extending back to September 2010. Users can shorter than timeframe and see more details by shorting the box size to 5 points.
Click this image for a live version.
The chart above shows the S&P 500 Point & Figure chart (3 x 5) with trendlines. Notice that the index hit resistance at the Bearish Resistance Line and turned lower with the red O-Column. This June high now marks a key resistance level. The last signal was a bullish catapult with the break above 1335 (green arrow). This bullish signal is in trouble because of a “high pole warning” on June 21st. You can read more about P&F charts in our ChartSchool.
