MT4 Point and Figure

• Mt4 point and figure charting is whole new representation of price action in a much more different way compared to the familiar candlestick and bar charting.

• This kind of trading exclusively uses point and figures chart while focusing on price action only. Those familiar with support/resistance break out trading may find Point and figure trading somewhat similar since a few concepts have been borrowed from it.

• Point and figure charts are generally not included in most basic charting platforms. It is because they are considered old by the general public but they are most talked about by professional traders.

• However, this chart is usually released by third party software developer to work on existing platform. For example, the popular forex trading platform Metatrader 4 or Mt4, have multiple versions of the chart released for the Mt4 forex traders in that platform.

• Point and Figure chart focuses precisely on price action which is integral for technical analysis while excluding other familiar traditional elements namely; the volume, time, security and the opening and closing price of a currency pair.

• Mt4 point and figure chart removes all the clatter from a chart in order to remain with a clear evidence of resistance and support, breakouts and trends. This makes it the most suitable option for currency markets.

• A typical point and figure chart consists of columns represented by Os and Xs. In this case an O indicates that there is a decline in price while an X depicts the price has risen in that particular column.

• If it reaches a point where the price has reversed direction, another column to cater for the rise and falls is added. Since this method eliminates volume, time and the opening and closing prices, whenever fixed increment in price is recorded, the column has to move in the chart.

• This is fixed for a small increment referred to as a box size which is a minimum amount the price increments or decrements by just before another column is created in the chart. Although most of them use a box size of 10 pips, it can be easily set according to a Forex trader's specification.

• For a small description of how this system works; in order to have 10 boxes in a column X, there must have been a continuous increment of 10 * 10 (100) pips that triggered addition of these 10 boxes in the column.

• No time or closing price will be used as an aid to determine the way the boxes are moved from a column to the next.

• Therefore, if another X box is added to the existing Xcolumn, then the price in the last box must have increased by at least 10 pips. If price move down by 3 boxes, that is, the price reduces by 3* 10 pips, the Reversal Amount, which is an important element that shows a reversal has happened using point and figure chart.

• In this case, a new column marked O is created and decremented accordingly. In case a decrement lower than the total pips in one column is noted, another O is added to the columns. The process continues with more X and O columns created according to price changes.

• This method is efficient looking at trends in forex trading since it gives a very clear, probably filtered, support and resistance image. Based on this, point and figure charting gives traders an opportunity to find high quality buy and sell signals.

• To download MT4 Point and Figure chart, you can gain access to the chart indicator by going to this url. The point and figure charting indicator can be used on the trader’s brokerage MT4 terminal. The charting capability is provided free and if the forex traders need more advanced automation needs, fee shall apply.

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