A Point & Figure Chart is a representation of the prices of stocks. It consists of two indicators X, and O, to indicate the price movement. X indicates the value of the stock reaches more than a selected high price, while O indicates that value reaches a selected low price.
Why do you need it?
We need this chart to filter the daily noise and main focus on market moves. The patterns on the chart indicate increase or decrease based on price history. This is a tool used by traders and investors to find out the best time to buy or sell their stocks.
What kind of data you can visualize with it?
We can visualize the ups and downs of stocks by Point & Figure Chart. To visualize Point and Figure charts, we make columns of X and O for filtered price movements. While Columns X represents rising prices, and Columns O represents falling prices. Time is not involved in Point and figure charts. With this evolution, we know that no movement in price means no change in the chart.