The scale for a point and figure chart is on the left hand side or the vertical axis.
By looking at the price increments of the scale we can determine the box size at that level.
Box sizes: Changes
are determined by the price range of the stock. Here
is a guide to creating the default scale for stocks. Note that the scales for Indices, Commodities and ETFs
varies based on the security. Our goal is to create a scale that provides for an orderly chart pattern. For example purposes, we will focus on using box sizes for stocks.
Examples: What the Value/ Price Columns would look like in the various box sizes:
0.25 box
0.50 box
1.0 box
2.0 box
5.00
4.75
4.50
4.25
4.00
3.75
3.50
9.00
8.50
8.00
7.50
7.00
6.50
6.00
40.00
39.00
38.00
37.00
36.00
35.00
34.00
120.00
118.00
116.00
114.00
112.00
110.00
108.00
Notice
how the increments work, how the value changes and is determined
by the box size.
Crossing Box Sizes:
There are times when a stock will cross several box sizes. Here
is an example of what that price column would look like:
The scale for a point and figure chart is on the left hand side or the vertical axis.
By looking at the price increments of the scale we can determine the box size at that level.
change here
