2. Charts
b. describe the construction of different types of technical analysis charts and interpret them;
What is a point and figure chart? Both axis of P&F charts’ are dependent on price, rather than one being based on price and the other on date. The key unit in a P&F chart is the point, or unit of price. Xs represent upward price trends and Os represent downward price trends.
Source:
CFA
Graph:
- 115.100.06 Portfolio Management - Reading 56 - Technical Analysis to 115.100.06.02 Portfolio Management - Reading 56 - 2. Charts