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
ADX
by PRASHANT SHAH -
ADX is another popular indicator developed by J. Welles Wilder that evaluates strength of the trend. It fluctuates between 0 and 100 and displays strength of the current trend, whether it is up or down. Three lines are plotted below the price chart, which are the components of the ADX indicator. DMI+ and DMI-lines of ... Read more
Unique XO Indicators
by PRASHANT SHAH -
We discussed popular indicators and their application on P&F charts. But P&F is a charting system and it can have its own unique set of indicators as well. The indicators can be built using the unique features associated with the P&F charts. Unlike usual charts, P&F charts do not move horizontally and one of their ... Read more
PMOX Indicator
by PRASHANT SHAH -
We plot indicators on the price chart to read momentum and identify extreme zones. Usually, what happens is stocks may remain in an overbought zone for a long period during strong uptrends. They can also remain in the oversold zone for a while during a strong downtrend. Extreme zones are well respected when the market ... Read more
