| Welcome: |
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| Lesson 1: |
Part 2. Constructing A Chart: |
Rules for Charting:
Learning how to update a Point & Figure chart is fairly simple but there are a couple
of ground rules you must first understand. First, the Point & Figure chart uses the
high price and the low price for each trading day. Second, the chart continues in
the current column if possible. Third, a minimum of three boxes are required to
change columns. Finally, a chart can only move in one direction a day. These four
rules of charting are most easily understood by looking at them in a Flow Chart
format.
Flow Chart for PnF Charting:
Here is the Flow chart for PnF charting. If you meticulously follow this flow chart, you can not go wrong. Following the flow chart we will discuss each question.
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