Point & Figure Vertical Count Tool

1. Switch to Point & Figure Chart Type:

   • Make sure your chart is set to the Point & Figure (P&F) chart type.
   • You can do this by clicking on the chart type dropdown menu and selecting “Point & Figure.”

2. Access the Drawing Tool Bar:

   • On the chart interface, locate the drawing tool bar. This is located on the top left-hand side of the screen.
   • Click on the drawing tool bar to expand the options.

3. Select Shapes and Texts:

   • Within the drawing tool bar, click on the section labeled “Shapes and Texts.”
   • This section contains various drawing and annotation tools that you can use on your charts.

4. Activate the P&F Count Tool:

   • Look for the specific option named “P&F Count Tool” under the Shapes and Texts menu.
   • Click on the P&F Count Tool to activate it.

5. Using the P&F Count Tool:

   • Click on the breakout column in your P&F chart where you want to start the count.
   • Drag the tool across the chart to select the range of the vertical column, marking the area you wish to analyze.
   • The tool will automatically calculate the vertical count and display the projected price target on the chart.

6. Interpretation of Results:

   • The tool will provide a visual representation of the calculated price target based on the vertical count.
   • You can adjust the parameters, such as the box size and reversal value, to refine your analysis if needed.

7. Customization and Fine-Tuning:

   • Customize the settings to match your preferred box size, scaling, and other P&F parameters to ensure the most accurate analysis.
   • Make use of additional charting tools on the platform to combine P&F analysis with other technical indicators.

Use Case

The Point & Figure shapes drawing tool enables manual drawing of P&F patterns and column annotations directly on standard candlestick charts, allowing traders to integrate P&F analysis with conventional technical analysis.

Strategy

Use the Point & Figure shapes to annotate traditional double-top and double-bottom P&F breakout patterns on your candlestick chart. Mark where the P&F breakout signal occurred and use it as a directional bias filter for your conventional chart analysis.

Common Mistakes

Do not attempt to recreate a full P&F chart using shape annotations on a candlestick chart. Avoid using P&F pattern shapes without understanding their theoretical context. Do not use these annotations without also applying proper candlestick analysis for timing precision.