Gloe, Point and figure is the simplest form (and may be oldest form) of charting. Let's take IWM that closed at $79.30 today. Start a chart at $79 with an X. Using a .50 x 3 box reversal if the next days range of price is $78.75 to 79.75 an X would be added above the first X. If the high would have been 80.25 2X's would have been added to the first. If high did not exceed 79 by .50 or more and the low was not lower than 77.50 nothing would be done. If high did not exceed 79.50 but the low was 77.25, a column of O's would be started with 3 O's, starting right of the first X and at 78.50. If the next day the low didn't exceed 77 and the high exceed 78.50, nothing would be done. There are no fractions or time period in P&F. You can change the size to $1 and 4 boxes (requires $4 move for a new column), .25X3 (requires .75 for a new column). Stock price usually determines what size box to be used, Google might need a $5 to $10 box size, or $15 to $30 move for a new column of X's or O's. There are many good books on P&F, one of them is Three Point Reversal Method of Point & Figure by Michael L. Burke. I bought mine many years ago from Traders Press. I'm sure if you Google Point and Figure there is a better explanation then my lengthy one above. Also, any book on Technical Analysis will have it.
