Point & figure Charts are based solely on price movement, and do not take time into consideration. There is an x-axis but it does not extend evenly across the chart.
The beauty of point & figure charts is their simplicity. Little or no price movement is deemed irrelevant and therefore not duplicated on the chart. Only price movements that exceed specified levels are recorded. This focus on price movement makes it easier to identify support and resistance levels, bullish breakouts and bearish breakdowns.
Point & Figure charts consist of columns of X's and O's that represent filtered price movements over time. X's represent increasing prices (AKA demand). O's represent decreasing prices (AKA supply).
