It s been around forever, and despite that, it still works. It s point and figure charting, and it still offers unique advantages. Here are some examples.
Most people use bar charts or candlestick charts in their analysis.
Another charting form, point and figure, is less known but offers unique advantages over the more traditional charting methods. The point and figure charting technique became popular in 1948, when A. W. Cohen published his book on point and figure. Surprisingly, the methodology has hardly changed since then. Unlike bar charts, where the vertical coordinate is based on price and the horizontal coordinate is based on time, point and figure charts are only concerned with price. Although the year and months are reported on the horizontal axis, they are shown merely to establish a frame of reference.