NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis
In a point-and-figure chart, what does a column of Xs represent?
A column of Xs in a point-and-figure chart represents rising prices. Each X is added when the price moves up by the chosen box size, while Os represent declines. The chart ignores time and volume, focusing only on price changes of significant size.
- AA period of rising pricesCorrect
- BA period of falling prices
- CA period of high trading volume
- DA sideways market with no trend
Explanation
In point-and-figure charts, Xs are plotted when price rises by at least the box size, and Os are plotted when price falls. A column of Xs therefore shows an advancing price move. Time and volume are not plotted on the axis.
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