Point and Figure Chart explained in Simple language

In this video of the Face2Face series, we will be watching a conversation between Mr Vivek Bajaj, co-founder, StockEdge & Elearnmarkets, and Mr Vithal Shinde, a full-time trader who will be talking about his trading strategies and how to use them, with real-life examples. Firstly, we will discuss Mr Vithal Shinde’s background story and the journey of how he became a full-time trader. 

Moving to conceptual discussions, Mr. Vithal Shinde will discuss some of the trading strategies involving indicators and chart patterns that he has picked up from Elearnmarkets itself, and how it has helped him develop his own strategies. With practical examples, Mr Vithal Shinde will show how we can identify chart patterns and how to identify stocks with technical analysis.

Technical analysis uses the charting method of point and figure (P&F) trading to study and predict price changes in financial markets. It concentrates on capturing important price trends while removing minor, inconsequential price fluctuations. P&F charts use columns of Xs (which represent rising prices) and Os (which represent falling prices) to show price data. The chart ignores time and focuses on price variations. Before a new column is formed, each X or O represents a particular price increment or "box size" that must be attained.

Watch the entire video as Mr Vithal helps us understand identifying support and resistance levels, which are significant price levels where buying or selling pressure may be noticed, is the main idea behind P&F trading.  For better trading decisions, traders frequently combine P&F trading with other indicators and tools. P&F trading is just one method of technical analysis.