Indicators on P&F
by PRASHANT SHAH -
I was of the opinion initially that indicators are not required on Point & Figure charts. Price is a leading indicator and there is already a noise removal mechanism that is in-built in P&F charts. My thought was that more lines or indicators on P&F charts will only complicate the issue. But, I soon realized ... Read more
Volume on P&F
by PRASHANT SHAH -
It is also possible to plot volume on P&F charts, but the method of plotting them is different. Volume is shown as a histogram below the P&F charts but they are calculated only when a box is printed in the P&F column. So, volume during insignificant price moves will be ignored. Usual method of reading ... Read more
Moving Average
by PRASHANT SHAH -
Kenneth Tower introduced moving averages based on Point & Figure charts that proved to be a remarkable work in the field of technical analysis. Moving average is the most basic indicator that we use in all types of charts. It can be applied on Point & Figure charts too. A 10-day Moving average on bar ... Read more
Bollinger Bands
by PRASHANT SHAH -
Bollinger Bands is a wonderful invention of John Bollinger in the field of Technical analysis. It is the best channel indicator available out there. Advanced indicators such as Bollinger Bands on Point & Figure charts were first used by Jeremy du Plessis in his book The Definitive Guide to Point and Figure: A comprehensive Guide ... Read more
RSI
by PRASHANT SHAH -
Developed by J. Welles Wilder, Relative Strength Index (RSI) is perhaps most popular and widely used indicator. It is also possible to plot it on P&F charts. Formula remains the same but the underlying logic differs. Below is the formula of Relative Strength Index: RSI = 100 – 100 / (1 + RS) Where RS ... Read more
Noiseless RSI
by PRASHANT SHAH -
A new way to look at RSI. The RSI indicator on a Point & Figure chart was discussed. Let’s revisit the discussion and try to understand the concept. RSI is a very popular strength and momentum indicator. 14 is a widely followed period for RSI. If you plot 14-period RSI, it calculates a ratio of ... Read more
