Point and figure charting is a forex trading technique that helps traders analyze market trends without relying on time, focusing only on price movements. This method provides clear buy and sell signals, is simple to construct, and enables traders to set price objectives effectively. However, those using the Metatrader 4 platform may need to download an additional indicator to access point and figure charting features.

1. Understanding Point and Figure Charting
and how you Can Trade Profitably
• Point and figure charting is a technique of tabulating
movements or trends in forex trades through listening to
voices emanating from forex broker‘s voices boxes.
• This technique is not always used by personal, but
professional forex traders.

2. • Unlike in the past when the trends were manually
draw on a graph paper, these days, traders use
state of the art software that auto plots for them.
• Point and figure chart offers the trader important
guidance on the trades to take based on the
trends noted. This method remains one of the
best for those who want to learn how the market
is trending.

3. • Point and Figure Chart Benefits
Just like the online real time forex trading
charts, there are a number of benefits which
point and figure charting offers.
• This method of trend analysis does not have
an occurrence time because both axes of the
chart are price dependent.

4. • Here are some of the major advantages of
using point and figure charting technique of
trend analysis.

5. • It's simple to construct.
• Because time isn't charted, price is the only
thing that matters.
• The price reversals of a chosen size matters
thus helping in smoothing the chart
• Sell and buy signals are clearly generated.
• Easy to identify trend movements.
• Price objectives can easily be computed.

7. • Useful Chart Patterns
By looking at common patterns displayed on point and
figure charts, an experienced forex trader can generate
signals for buying and selling for the pair of currency
which allow the traders carry on with greater
objectivity.
• Forex traders can work out the price objectives using
horizontal or vertical box counting method. Here are
some important chart patterns which you will find
useful.

8. • Buy Signals
This is characterized
by a higher bottom
followed by a higher
top. They cover signals
such as Bullish Triangle,
Spread triple Top,
Triple Top, Double Top,
Low Pol, Long tail
down and Bullish
Catapult.

9. • Buy Signals
This is indicated by a lower top followed by a
lower bottom and among the popular trends
are Triple Bottom, Double Bottom, High Pole,
Bearish Triangle, Spread Triple Bottom and
Bearish Catapult.

10. Using the Trend to Trade profitably

11. • After the trend is generated, forex trader may still
opt to trade against it. This is the scenario when
the signal isn't in agreement with the underlying
trend. There is high probability when you trade
following the patterns produced by the
underlying trend.
To do an assessment of a bullish market, a forex
trader should draw a line upwards at the angle of
45 degree starting from the point the previous
low was last recorded. Any signal above this point
would be ignored and buy signals can be taken.

12. • However, if you want to access a bearish market,
you will have to draw a line at 45 degrees going
downwards from the last preceding high point.
• Any signal that asks you to buy which is above the
line you have drawn should be ignored. Any
available sell signals can be traded on. Traders
should be keen to detail when doing this.

13. • If you are a forex trader and trades on the
Metatrader 4 trading platform, you will not
have access to point and figure charting
because it does not comes within the standard
charting package. You can gain access to point
and figure charting by downloading the mt4
point and figure chart indicator here.

14. • http://www.forexchartistry.com/pointandfigurecharting