Point and figure chart ( X O chart)

Intructions Point and figure chart is one of a popular chart was created by the japanese, don't like other chart, it solely calculate the price movement. The prices are showed on both axis. it has been described as one of the simplest systems for better determining solid entry and exit points in trading.

Calculation:

To display point and figure chart, you must specify the box unit, and mark X letter when the prices rise by the box size and mark O when the price fall by the box size

For example:  

I specify the box unit at 1 USD, the prices rise up from 10 to 15 USD, you mark X from 10 to 15, then prices fall down to 12, you mark O from 14 down to 12.

15 X

    14 X O

    13 X O

    12 X O

11 X

10 X

Some ways to use point and figure chart:

Source: http://www.investopedia.com