• Point & Figure charts are an old, but powerful form of .
• Easily and readily identify buy and sell zones.
Crypto Point & Figure Charts
Point and Figure charts are a form of chart analysis that does not use or time – just price. Whereas American Bar Charts and Japanese have a time element per bar or , Point and Figure charts do not. In that respect, they are very similar to Renko charts, Swing charts or Line Break charts. Price action is the only factor that matters. It has been said that people who use only Point and Figure charts are about as ‘purist’ as a price action trader as you can get because all you are ever concerned about is price. What this means is that a ‘box’ (X or an O) or a series of boxes could form on a chart within minutes, or it could remain there for a week (which would represent a tight trading range using ).
Bitcoin’s chart shows an interesting zone. There is a very clear on the chart, which looks more like a . In fact, the same continuation patterns that we see on from big moves ( and flags) are also applicable on Point and Figure charts. One of the benefits of these charts is that we get to see a clear level of where to go long and where to go short. For Bitcoin , those price levels are when we get a clear break of not just the symmetrical triangle, but also a move above the prior high and/or low. A long position is generated when price returns to the 4400 value area whereas a short trade is generated at the 3200 value area.