Point and Figure ChartP&F
A point and figure chart plots columns of X's for rising prices and O's for falling prices, adding a mark only when price moves a full box size. Time is ignored, and a column usually reverses only after a three-box move the other way.
Point and figure is one of the oldest charting methods, older than candlesticks in the West. Instead of bars, it stacks X's and O's, and it only cares whether price has moved enough to matter. The result is a compact chart where support, resistance and breakouts jump out. This entry explains boxes, reversals and how P&F signals work.
- Category
- Technical Analysis
- Reading time
- 3 min
- Also called
- Point & Figure chart, P&F chart, PnF chart
- Updated
Point and figure in plain words
P&F charts are columns of X's and O's: X-columns show rising prices and O-columns falling prices, and each box is a set price step.1
Time plays no part; no price movement means no change on the chart.1
The 3-box reversal method is the most popular: a column only reverses after a move of at least three boxes.1
How a P&F chart is built, step by step
Pick a box size
Traditional table, percentage, ATR or a fixed amount.
Pick a reversal amount
Usually three boxes.
Add X's while rising
One X for each full box gained.
Reverse to O's
Only after a three-box decline.
Read the levels
Columns line up at support and resistance. See Support and Resistance.
Watch breakouts
An X above the prior X-column is a buy signal. See Breakout Trading.
Worked examples
Example 1 — Percentage box size
$5 boxes5% scaling on a $100 stock.
| Box size | $100 × 5% = $5 |
With percentage scaling, each box is a fixed percentage of the price.2
Example 2 — Is it a reversal?
No reversalBox size $1, 3-box reversal. An X-column tops at $50; price falls to $48.20.
| Decline | $1.80 — less than 3 boxes |
| Chart | No change |
A reversal requires at least three boxes, so smaller pullbacks are filtered out.1
Example 3 — Reversal confirmed
New O-columnSame chart; price falls to $46.90.
| Decline | $50 → below $47 = 3 boxes |
| New column | O's at $49, $48, $47 |
Once the three-box rule is met, a new O-column starts one box below the top.1
P&F scaling methods
| Aspect | Box size | Best for |
|---|---|---|
| Traditional | From a price-range table | Classic stock charts |
| Percentage | Fixed % of price | Long histories |
| ATR (dynamic) | Average True Range | Volatility-adjusted |
| User-defined | One fixed amount | Narrow price ranges |
How traders use P&F charts
Clear support and resistance
Columns align at key levels.1
Breakout signals
Double-top and double-bottom breaks.
Price targets
Vertical and horizontal counts estimate objectives.
Trend lines
45-degree lines drawn automatically.
Advantages and disadvantages
Advantages
- Filters insignificant moves.
- Makes support and resistance easy to see.
- Objective buy and sell signals.
Disadvantages
- No time axis.
- Settings change the picture a lot.
- Less familiar to most traders.
Going deeper
Read as far as you need. Each level builds on the one before it.
Long history
Beginner
Early versions used numbers and were called figure charts; A.W. Cohen later popularised the classic 3-box reversal method with X's and O's.1
Timeframe comes from settings
Intermediate
How far back a P&F chart reaches depends on the number of reversals, which is set by box size, reversal amount and data interval.2
Intraday data, long view
Advanced
Even intraday P&F charts can stretch far back in time, because quiet periods add no columns.2 See Renko Chart.
Common mistakes
Wrong box size
Too small is noisy, too large misses moves.
Expecting dates
P&F columns are not tied to time.
Ignoring the reversal rule
Partial moves don't count.
Using closing and high-low data interchangeably
They produce different charts.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- P&F charts use X's for rises and O's for falls.
- Each box is a set price step.
- Time is ignored.
- A 3-box reversal is the classic rule.
- Support, resistance and breakouts are easy to see.
Frequently asked questions
Why use a 3-box reversal?
Are P&F charts still used?
Can P&F charts be used for crypto?
Further learning
- Renko Chart
A brick-based cousin.
- Kagi Chart
Another time-free chart.
- Support and Resistance
What P&F shows best.
- Breakout Trading
Trading P&F signals.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- StockCharts ChartSchool. Introduction to Point & Figure Charts (opens in a new tab) Checked .
- StockCharts ChartSchool. Point & Figure Scaling and Timeframes (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.