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PNF FAQ

Point and Figure Charts - Frequently Asked Questions

If you ask a question that isn't covered elsewhere and that I think others will be interested in, a non-identifying version is likely to end up here. So use the contact form to ask your own question if the answer does not appear below.  Come back regularly for updates.


What are Examples of Tested Crypto / Digital Currency Codes?

See this page for the latest list of tested crypto currency codes.


What are the Valid Foreign Currency Codes?

See this page for a list of currency codes used in FOREX entries and the MARKET component of a CRYPTO CURRENCY entry.


Where does the Stock Data Come From?

Point and Figure Charts sources all of its stock data from the Alpha Vantage service. This is an amazing service which provides a huge range of daily stock prices for stocks, indices and currencies from all over the world. See their website for further information.

However, it sometimes (not very often) inexplicably drops a particular stock for some period of time. The search will say they support it (and probably did until yesterday) but will report no data available when asked for the latest prices. Unfortunately this is completely out of our control and Alpha Vantage unfortunately does not have a support capability that can answer questions about particular stock price availability. If this happens to you, please keep trying as they often come back in a few days.


Where is MY data stored - Can anyone else Access it?

All of the app data is stored on your local device.  It is not shared with the developer or available to anyone else.  Only those that have access to your device have access to your data.  


Where can I find out more about Point and Figure Charts?

There are a number of authoritative sources available on the correct use of Point and Figure Charts (the tool not our app). In particular there are a number of books by the following authors that are definitive guides to the history, chart construction (but of course our app builds them for you) and most importantly their interpretation:

  • Jeremy Du Plessis

  • Thomas J. Dorsey

  • DeVilliers & Taylor

A web search will also turn up a range of useful information however some of these have non-standard interpretations


What Are Some Examples?

All of the following images are sourced using the Point and Figure Charts app.

Here is a line chart of the end of day Close prices for 18 years of the Dow Jones Index.

Simulator Screen Shot - iPad Pro (12.9-inch) (2nd generation) - 2018-09-27 at 14.09.59.png

And here is a Point and Figure Chart of the same data with a particular set of parameters chosen. You will note that all of the rising trend from 2012 until the present has been compressed up into that last rising column. This illustrates well an important aspect of Point and Figure Charts - they are variable by time. They show lots of detail where the price is changing significantly but none at all where prices are remaining static.

Simulator Screen Shot - iPad Pro (12.9-inch) (2nd generation) - 2018-09-27 at 14.12.19.png

By adjusting the parameters you can focus in on more granular detail or zoom out to the more significant long term trends. In the next example, we have focused in on only the data from 2017 and 2018 with more detail to show less significant changes in price. We have also overlayed the chart with support and resistance lines.

Simulator Screen Shot - iPad Pro (12.9-inch) (2nd generation) - 2018-09-27 at 14.20.21.png

How Are the HORIZONTAL & VERTICAL Price Targets Calculated?

Vertical Counts to generate Price Targets was introduced in v1.2 of Point and Figure Charts while Horizontal Counts were not available until v2.5. Note: price targets are indicative only and are not guaranteed to be attained.

This app allows you to test using these count methods for free on 1 calendar day and then forever using a one-off small in-app purchase.

The methods used follow the same algorithms described in the StockCharts.com ChartSchool web-pages as follows:

Vertical Counts: Click here to open

Horizontal Counts: Click here to open


What is the Box Calc Direction and What Difference Does It Make?

Previous to v2.3, the app calculated the box values on a P&F chart starting with the highest value downwards.  This is a non-standard (but valid) approach.  The standard approach of calculating from the smallest value up is now the default.  But you can select “From Largest” on the Parameter screen should you wish to continue using the top-down approach.

For example, “From Largest” will take the highest data value plus a margin and then calculate the box values down the chart by subtracting the boxSize (or multiplying by 1 - boxSize% for logarithmic charts). “From Smallest” starts with the lowest data value less a margin and calculates the box values by adding the boxSize (or multiplying by 1 + boxSize% for log charts).

As with any P&F chart, changing the price values in the boxes can have an impact on the detailed shape of the chart and the emergence of buy and sell indicators. Changing the direction in which the box values are calculated (especially for logarithmic charts) will change the values shown in the boxes (by a small amount). Hence changing the box calculation direction “From Largest” to “From Smallest” can result in small changes to the P&F chart.

Both approaches are valid but “From Smallest” is the method used in most charting software (e.g. StockCharts). Chose one approach for a stock and stick with it.


How do the Watchlists Work?

You can use multiple Watchlists to organise your followed stocks or just have them all in one “Default Watchlist”. It is entirely up to you.

You can add and remove Watchlists from the “Watchlist Sets” screen using the + and Edit buttons - just like you do with stocks. Note:

  • any stocks in a watchlist that you delete will be moved to the “Default Watchlist”

  • you can rename a watchlist using the Edit button

  • a new stock will be added into the watchlist currently displayed

  • you can move a stock from one watchlist to another by navigating to the “Parameters” screen for that stock and then tapping on the “Watchlist name” field at the top.