An element of point and figure charting. Point and figure is a one-dimensional chart which has no consistent x-axis showing the passage of time (unlike a line chart). The idea is to identify changes in direction according to user-determined criteria. In other words, a share’s price is not considered to have “turned” until it has reversed by at least three “boxes”. The choice of the box size is entirely up to the user. For example, if on a certain share, you chose a box size of 100c, then a “three-point reversal” would require you see a change in direction of at least 300c before any change was noted on your chart. In a rising share, each box is represented by an “X” for each 100c passed. This is shown in a rising column of “X’s” until there is a reversal, which is then represented by a column of falling “O’s”, with each “O” representing a fall of 100c. Once again, the downward trend is shown as a falling column of “O’s” until a three-point reversal occurs (i.e. until the share moves up at least 300c – then a new rising column of “X’s” is drawn).

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