"I have a technical issue regarding the P&F charts, in particular Gold. It reversed upwards and hence has 3 "X"'s. On 21 May the closing price was 1593 which is above 1584! [Ed. $12 box size] Therefore I would expect to see an additional "X" to form 4 X's in a column! I thought that you only needed to see a price close above the line to initiate another X or O in the column?"

Eoin Treacy's view Thank you for this question which others may also have an interest in. Point and figure charts only measure price increases as increments of the box size. Since the P&F chart you are looking at has a $12 box size, gold will need to rally by at least $12 on a closing basis to warrant the introduction of a new ‘x'. This would require a close above $1596 ($1584 + $12). Since we use three box reversals for our P&F charts, gold will need to fall by at least $36 ($12 x 3) on a closing basis to register the next reversal.