This page will display Nifty point and figure chart (P&F chart). We will also discuss about creating P&F charts, trend information, deciphering P&F charts and setting the chart attributes.
Nifty Point And Figure Chart – Updated End Of Day
The point and figure charts consists of X and O columns. It is one of the oldest forms of charting. In USA P&F charting has been found to exist since 1870 or so. It is a totally different technique of following prices because it does not focus on volume and it does not focus on time.
In any other kind of charts we have time on the horizontal bar. But P&F charts focus only on difference on price. That means this chart mainly following the volatility. Suppose the VIX goes crazy and the market swings 10% in a single day, that kind of volatility is difficult to handle with a time based chart.
So support and resistance areas that can take weeks to form in bar or candlestick charts will take days to form in a point and figure chart. Trend lines, moving averages, all sorts of different indicators you can also apply them to a point and figure chart. To understand P&F charts you may read my blog post Point And Figure Charting (Download Power Point Presentation FREE). From this post you can also download and read power point presentation by David Linton, the guru of P&F charting.
In the P&F charts Xs represent a upmove and Os represent downmoves. The chart above shows the Nifty point and figure chart. This chart is updated daily at the end of day. You can clearly understand the support and resistance areas of Nifty from this chart. Targets also reflect time to time from this chart. The targets will be written on the chart box if projected.