PnF Chart Examples:
Here we demonstrate how a chart builds over a period of trading days.

Beginning Chart
High 47.63 Low 43.25
The top X is at the 46 level. The first thing to determine is whether the stock traded as high as 47 to add another X. It has to be 47 even, not 46.999 but 47. Looking at the trade information (High 47.63, Low 43.25) it did trade as high as 47 so we can add another X to the column. That is all to be done for the day.

Next Trading Day
High 47.975 Low 43
Each day is the same process. You look at the high and low to determine if you can continue in the same column or if you have enough for a three box reversal. The high needed to add another X would be 48, but the high was only 47.975, not enough. So now you look to see if it moved low enough for a three box reversal at 44. The low was 43, so yes, it is enough for the three box reversal. In fact it adds four boxes (O's).

Next Trading Day
High 50.125 Low 41.975
We are now in a column of O's so we look first to see if the stock trades low enough to add another O. If it does an O is added no matter how high the stock trades. The stock managed to add another O to the chart because it traded to 41.975 filling the 42 box. We do nothing with the move to 50.125.

Next Trading Day
High 50.50 Low 41.45
Again the same procedure. We look to see if the stock traded to 41 to add another O and, if not, did it trade high enough for a three box reversal up? Even though it traded into the 41 range it did not hit 41, therefore no additional O. Now we check if it traded high enough for a three box reversal into X's at 45 and it did, it traded as high as the 50 box.

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