Point-and-Figure Charts: Box Size, Reversals, and MT5 Settings
Summary
The document explains point-and-figure charting as a way to display price movement while ignoring elapsed time. A new X or O is added only after price moves by a chosen box size; the chart changes direction after an opposite move reaches a specified reversal distance. Traders can set the price source, box and reversal parameters, and display options in a MetaTrader 5 indicator that builds its chart from real tick data. Alerts can be configured for new symbols or reversals.
An example describes four days of EUR/USD data represented by 47 columns, using a 60-point box and a three-box reversal. The text notes that conventional support, resistance, trendlines, and chart patterns can also be applied to these charts, and gives a BTC/USD illustration. These are examples of chart construction, not evidence of trading performance. The resulting pattern depends on parameter choices and the chosen Bid, Ask, midpoint, or mixed price input; more tick history also requires more computation.
Key ideas
- Point-and-figure charts record price changes that exceed a selected box size and do not use time as the horizontal unit.
- A reversal is recorded only after price moves the specified number of boxes in the opposite direction.
- The MT5 indicator supports different price sources, configurable chart settings, and alerts for new symbols or reversals.
- Support, resistance, trendlines, and familiar chart patterns can be analyzed on point-and-figure charts, but the document provides no performance testing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.