POINT & FIGURE TECHNIQUE by Technical Analysis, Inc.
Explanation of point and figure charting, which is similar to bar charting except that price reversals below a minimum size are eliminated, and time is not a factor. This is one of the simplest methods for following markets.
Point and figure charting is a technical trading approach that has been credited to Charles Dow, originator
of the Dow theory. This technique differs from bar charting in that price reversals below a minimum size
are eliminated and time is not a factor (it may be listed as only a frame of reference). Any market or
indicator can be plotted using this technique; we use a stock for our example.