Unfortunately, it doesn't support dynamic (e.g., ATR-based) box size setting. The PnF view can be customized via box size and reversal values. Non-MetaTrader solutionsįXCM is a Forex broker that offers its own point-and-figure charting solution - via a proprietary Trading Station 2.0 desktop platform. All charts (except Oanda's) display EUR/USD with box size set to 6 standard pips and reversal set to 3. Here, you will see several ways to get P&F charts for your analysis. It is also a very good thing that you are not obliged to trade using the same platform that you use for charting, so your choice should not be limited by your broker. Fortunately, there are numerous charting solutions to draw Forex point-and-figure charts. For example, neither MetaTrader 4 nor MetaTrader 5 provide point-and-figure view as a part of their default toolsets. A probable reason for this can be the fact that P&F charts are not supported by many trading platforms. Point-and-figure charts aren't very popular in Forex trading - perhaps, they are the least used chart type, even among exotic chart types. You can scroll down to see several examples of P&F charts plotted in various pieces of FX trading software. As a result, a trader sees a lot of X's and O's plotted on the chart - they represent the price changes in pure form and can still be analyzed with the conventional technical analysis tools, for example - chart patterns. And if it does, the first O is drawn in the next column, one box below the top X of the previous column (the price went down) additionally, two more O's are drown in the same column below the first O as it was the movement of 30 pips, which for a box size of 10 pips means 3 boxes. If the bullish movement (a column of ascending X's) is currently being drawn, then to qualify for a reversal, the price has to go down by 3 × 10 = 30 pips. The reversal size of 3 and 4 is quite common but any integer number equal to or greater than 1 can be chosen as the reversal size. The reversal size is the number of boxes that the price has to go against the current movement to end it and to start drawing a new one in the opposite direction. In addition to the box size, another important parameter is chosen by a trader - reversal size. To draw a bearish movement, it would be necessary to put an O for every 10 pips that the price goes down. As you see, the filtering power of the method is obvious. If the price fluctuates within 10 pips, nothing is drawn on the chart. When the price goes up another 10 pips, a new X is drawn on top of the first one and so on. When the price goes up 10 pips up (let us consider the box size = 10) an X can be drawn on the chart. Once the size of the box is chosen and the starting point is decided, the drawing can be started. The smaller the box is the less filtered becomes the price and the more price movements get pictured on the chart. The bigger the box size is the more filtered the P&F chart will be and the less movements it will contain. Of course, any box size can be used - 6, 50, 100, or even 1,000 pips. Usually, the box size is chosen as 10 pips in Forex trading.
To start drawing a P&F chart, first, it is necessary to decide the box size - the price change that would be big enough to draw as either X or O on the chart. Of course, nowadays, almost any symbol or just a colored box can be used to chart point-and-figure movements. The name XO comes from the classic way such charts are drawn - the bullish movement is represented by the column of X's, while the bearish movement is shown with a column of O's. Point-and-figure charts are often call P&F or PnF or simply XO.
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And traders have full control of what price changes they want to be informed about. While the vertical scale is still designated for price, the horizontal scale measures only the number of price reversals or movements and says nothing about the time when they started or ended.Īt first, such charts may seem strange and alien to a currency trader, but point-and-figure charts are the perfect noise filters and display only information that is really valuable - the prices big enough to bother paying attention to. It is like Japanese candlesticks, bars, and lines but different. Point-and-figure is a method to represent the price information on charts.
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