A quién sirve — Anyone who knows candles only and wants to understand why Wyckoff used X and O: filter noise and measure how far a issue can move after a trading range.
Point & Figure records only price changes beyond a threshold (box size), ignoring time and (in classic form) volume. Columns of X (rise) and O (fall); column reversal when price retraces reversal boxes (typically 3). In Wyckoff it implements the cause/effect law: range width = cause; vertical projection = minimum effect.
In plain terms — Mark X/O only when price moves «enough». Time disappears; clean structure and measurable targets remain.
Parameters
| Element | Meaning |
|---|---|
| X | Rising column |
| O | Falling column |
| Box size | Minimum move for one mark |
| Reversal | Boxes to open opposite column (e.g. 3) |
P&F vs bar chart (Wyckoff)
| Bar chart | Point & Figure | |
|---|---|---|
| Time | Yes | No |
| Volume | Visible | Absent (classic) |
| Range events | SC, spring, SOS | — |
| Targets | Levels | Cause count → target |
Error típico — Using P&F as automatic buy/sell signal — in Wyckoff it is a ruler for targets; entry from events and volume on bar chart.
Ejemplo — Range 12 columns, box €1, reversal 3: projection 12 × €1 × 3 = €36 from breakout — minimum target, not promise.
Summary card
- Role: Wyckoff cause/effect.
- Not: standalone signal system.
- Deep dive: P&F cause count.