Option Investor
Glossary

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Point and Figure

One of the older charting techniques used in technical analysis. A point and figure chart is constructed in a unique way using much the same data as many other techniques. Price movement data is plotted without regard to time. Every time the price of the stock moves upward, an X is placed in a column. As long as the stock continues to move higher the X's are placed in the same column. Should the stock make a negative move, an O is placed in the next column over. Each time the stock moves lower, another O is placed in the column. Over time, the point and figure chart will help to define the general direction of a trend more clearly.