Point-and-Figure Charting - Bredbandsbolaget

Extension of the standard scale
What you also see is that the previous table consists of repeating numbers. For the price range
limits the repeating numbers are 29, 60, 140 and for the box sizes 1, 2, 5. With those numbers
you can – by multiplication by 10 – get to any scale-values you want. For example, the Dow in
a range of 6,000 (better not!) and 14,000 (hopefully) you use simply a box size of 200, found
by multiplying the last row on the table by 10.=====
Example 1.1 – Variable box sizes
The scale is based on areas made out of 101 boxes, namely:
• 6 to 14, box size 0.2, (40 boxes)
• 14 to 29, box size 0.5, (30 boxes)
• 29 to 60, box size 1, (31 boxes)
then in order to get the scale for bigger values you multiply the range limits and the box size by
10, 100, 1000, 10000 etc. If you want a scale for smaller values you divide range and box sizes
by 10 or 100.
Let’s say that you want a scale for a stock that traded between 230 and 780. You multiply the
above values once by 10, and you get:
• 60 to 140, box size 2, (40 boxes)
• 140 to 290, box size 5, (30 boxes)
• 290 to 600, box size 10, (31 boxes)
then you multiply by 10 once more to get
• 600 to 1400, box size 20
• 1400 to 2900, box size 50
• 2900 to 6000, box size 100.
Now you take values that allow the inclusion of 230 to 780. The result is thus:
• 140 to 290, box size 5
• 290 to 600, box size 10
• 600 to 1400 step, box size 20
That’s it!
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Drawing Point-and-Figure Charts
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