Software designed specifically for Point and Figure can give you a huge advantage over traditional software. Unfortunately most programs only use very basic Point and Figure charting concepts. This approach misses the true potential of what automated Point and Figure software can do for you.
Point and Figure Charting Before Software
Here we see what an earlier trader would have used to make a chart by hand. An X or O is marked every time the stock price reaches the box size threshold. The trader would then go through his charts to identify the trendlines and patterns. Need a review on Point and Figure chart basics? Click here.
Most Point and Figure Charting Software Programs
Most computer programs simply duplicate the hand-drawn charting method. This saves time over hand drawing your charts. But they don't give a definite advantage besides that. This is because most programs are modeled after bar charts or candlestick charts. They just replaced bar charts with Point and Figure charts, without adding the features that make Point and Figure powerful.
Point and Figure Software Designed with Advanced P&F Features
Advanced festures include:
What does a software or service look like that was designed specifically for Point and Figure charting?
Here are a few of the features that really unlock the potential of Point and Figure charting:
Robust Search Functionality
In the past, most traders spent the majority of their time tracking different stocks. They charted many potential stocks and watched patterns and trends until they found the ideal trading opportunity. Many traders still operate this way. They start with a handful of stocks, look at their charts and watch them until they see a pattern forming.
Advanced Point and Figure search tools give you the ability to find a list of stocks that fit your exact investment requirements. Instead of scanning through dozens of stocks before you find your ideal pattern, you can quickly pull up a list of dozens or hundreds of stocks that fit your ideal criteria. You can then look through these stocks and pick the best opportunities to focus on.
Most traders spend too much time retracing the same steps and doing the same things every day. Setting up automatic notifications lets you stay on top of the most important developments without having to check in every day. Automated Point and Figure notifications focus on patterns as they develop. Instead of getting automated notices every time your stock hits a certain price, you can get a notification when a pattern forms. This is powerful because it allows traders to track their investments automatically. If a bearish pattern is forming, they can quickly analyze and make a move if needed. Traders can also receive notifications on potential investments.
Advanced Analysis and Indicators
New and experienced traders can benefit from Point and Figure-based indicators and analysis. It helps focus your attention on the most important movements and trends of a stock, and provides a good starting point for your research and analysis.
Wyckoff Charting Features and Advanced Charting Options
Most programs only offer limited charting features. True Point and Figure software provides Wyckoff charting and other features such as: automatic box size, manual box size, percentage scale, reversal size, time period, and automatically drawing trendlines and patterns.
Relative Strength Features
Relative Strength charting helps you compare how your investments stack up against other stocks, sectors, and the market in general. It's a valuable tool for top-down investment strategies because it shows you which macro trends you should align your strategies with. The right software makes using Relative Strength charts easy and automatic.
Portfolios and Watchlists
A Point and Figure portfolio or watchlist can give you several advantages:
-Quickly see what pattern all of your investments/watchlists are in.
-Rank your investments and watchlists by Relative Strength value.
-Get automatic updates on any of your portfolios or watchlists.
Having your portfolio or watchlists in a Point and Figure-based program gives you the advantage of being able to see the most important trends and patterns all at once.
More Point and Figure Charting Articles and Resources on
Point and Figure Charts
Point and Figure Charting Basics
Point and Figure Patterns