"Point And Figure" Trading Explained For Beginners (Supply And Demand Trading Course) | Summary and Q&A

TL;DR

Point and Figure charts are a useful tool for day trading, scalping, and swing trading, providing a visual representation of supply and demand in the market.

Key Insights

• 📈 Point and Figure charts provide a visual representation of supply and demand, helping traders identify trends and trend reversals.
• 🕴️ The box size and reversal amount can be customized to suit individual trading styles and market conditions.
• 💁 Support and resistance levels can be spotted on the chart, providing valuable information for trading decisions.
• 😥 Point and Figure charts offer a clear and organized way to filter out market "noise" and focus on long-term price movements.

Transcript

Hello and welcome. Today we'll look at the point and figure chart, we'll cover its features, as well as discuss how they're useful to day trading, scalping and swing trading and we’ll also see how to spot supply and demand zones using this type of analysis. So if you could… like, subscribe to the channel and stick around for the full video. Here we... Read More

Questions & Answers

Q: How do Point and Figure charts differ from candlestick charts?

While candlestick charts show price changes over time, Point and Figure charts focus solely on price movements, disregarding time intervals.

Q: How do Point and Figure charts represent supply and demand?

When demand exceeds supply, the chart shows a column of X's, indicating higher prices. Conversely, a column of O's represents more supply than demand and lower prices.

Q: How are the box size and reversal amount determined?

Traders can set the box size, which represents the minimum price change needed to continue a trend. The reversal amount is the number of boxes price must move for a new column to form.

Q: How can one use Point and Figure charts to find support and resistance levels?

Support levels are identified as horizontal rows of O's, indicating a level where demand overcomes supply. Resistance levels, on the other hand, are marked by horizontal rows of X's, suggesting supply overpowering demand.

Summary & Key Takeaways

• Point and Figure charts are a different way of representing price changes, focusing on supply and demand rather than time.

• The chart consists of columns of X's (uptrend) and O's (downtrend) and helps identify trends and trend reversals.

• The box size and reversal amount are customizable inputs that determine the size and movement required for each X or O.