Charting and Studies User Guide - CQG.com

No Xs or Os are displayed if prices rise or fall by an amount that is less than the box size.
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The Data Source parameter specifies the time frame of the data that will be used to build the
Point and Figure bars. Using longer term data means the display will be less detailed but faster
to display. Conversely, using shorter term or tick data means the display will be more detailed
but slower to build.
The convention for plotting point and figure charts dictates that each X column start one O
above the lowest O in the most recent column, and each O column start one X below the high
in the most recent X column. Therefore, there are situations, especially in volatile markets,
where the start of each X or O column does not actually represent a price the market traded.
CQG alerts you to those situations by highlighting the Xs and Os, which represent actual trades
when the vertical cursor is active.
You are also made aware of those situations through the PFHigh and PFLow box where the
actual trade prices for each reversal are clearly indicated.
Point and figure charts help establish entry and exit points, determine support and resistance
levels, and identify trends and trend reversals.
Price formations are analyzed to expose potential buy and sell signals and breakout from
support and resistance levels. Breakouts may indicate where the trend is headed. The longer a
price plot moves in the same direction, the stronger the reaction may be on a breakout. An
uptrend could indicate that demand has overcome supply, while a downtrend may indicate the
opposite.
Connect highs and lows using the ZigZag study:
Charting and Studies User Guide