## Chapter Five. Indicators of Point and Figure Charts

### Introduction

This chapter is deliberately entitled ‘Indicators of Point and Figure Charts’ because the indicators are calculated from the Point and Figure chart and not from the raw data, which is the case for indicators used with time-based charts. The Point and Figure chart must be drawn first, then the indicator calculated using the same technique as that used to calculate moving averages in the previous chapter; that is the midpoint of each column is the proxy for the column and is therefore used to calculate the indicator using the number of columns as the length.

This means that a change in the Point and Figure parameters and construction method will result in a different Point and Figure ...