Point and Figure
Point and figure charting is one of the older, yet still widely used, charting techniques. It is a lot more than simple jargon technicians use and cannot be given the proper treatment it deserves in a book such as this. This section will just give you a taste of this key alternative charting style.
Of the major charting styles such as bars, lines, and candles, point and figure is unique in that it is constructed in a completely different way from the others, but is analyzed with the same techniques. It plots price changes only, without regard to time, through a user-defined filter. This filter removes price “wiggles” (volatility) and can be adjusted for maximum or minimum sensitivity.
Traders constructed point and figure charts ...