Point & Figure Charts Explained — How to Read P&F Charts for NSE Stocks

Q: What is the difference between Point and Figure and candlestick charts?

Candlestick charts plot every time period (each day is one candle). P&F charts only plot when price moves by a set amount (the box size), ignoring time completely. This filters out noise and sideways chop, showing only meaningful price movements. A P&F chart can have one column spanning weeks if price moves consistently in one direction.

By Jiten Patel · Updated June 2026 · 9 min read

Most traders read candlestick charts. The problem? Candlesticks show you every little price wiggle, every gap, every day of sideways noise. Point & Figure (P&F) charts strip all of that away and show only one thing: meaningful price movement. No time axis. No volume bars. Just pure price action.

P&F charts were one of the first charting methods used on Wall Street (dating back to the 1880s), and they remain popular with institutional traders who want clean support/resistance levels and unambiguous breakout signals.

Try P&F charts for any NSE stock — free
Open P&F Charts →

How P&F Charts Work

A P&F chart uses two symbols:

X (green) — price is rising
O (red) — price is falling

X       X
X O   X
X O X X
X O X
  O X
  O

Two key settings control how the chart is drawn:

Box Size

The minimum price movement to add a new X or O. If the box size is 10 rupees, the stock must move at least 10 rupees up to add an X, or 10 rupees down to add an O. Smaller moves are ignored.

ATR Box — automatically calculated from the stock’s Average True Range (volatility). Recommended for most traders.
Percentage Box (1%) — box size is 1% of price. Works well across different price ranges.
Fixed Box — a fixed rupee amount (e.g., 10). Good when you know the stock well.

Reversal Factor

How many boxes the price must reverse before starting a new column. The most common setting is 3-box reversal: if each box is 10 rupees, the price must drop 30 rupees to switch from an X column to an O column.

Setting	Sensitivity	Best For
2-box reversal	High (more signals)	Short-term trades, volatile stocks
3-box reversal	Standard	Swing trades (most traders)
4-box reversal	Low (fewer, stronger signals)	Positional trades, trend following

Key P&F Patterns

Double Top Breakout (Bullish)

The most reliable P&F buy signal. The current X column rises above the high of the previous X column. This means buyers have overcome the last resistance level. On SpikeDesk, these are automatically highlighted.

Double Bottom Breakdown (Bearish)

The opposite: the current O column falls below the low of the previous O column. Sellers have broken through support. A clear short or exit signal.

Triple Top Breakout

Even stronger than double top. Price tested the same resistance level twice and failed, then breaks through on the third attempt. This is a high-confidence buy signal because the resistance was thoroughly tested.

Support & Resistance on P&F

P&F charts give some of the cleanest support and resistance levels of any charting method. Because time noise is removed, horizontal lines across O-column lows (support) and X-column highs (resistance) are precise and reliable.

SpikeDesk automatically draws S/R lines and trend lines on the P&F chart. Toggle them with the S/R Lines and Trend Lines overlays.

P&F vs Candlestick Charts

Feature	Point & Figure	Candlestick
Time axis	No (only price)	Yes (each candle = 1 period)
Noise filtering	Excellent	Minimal
S/R clarity	Very clear	Requires interpretation
Breakout signals	Unambiguous (Double Top)	Subjective
Volume data	Not shown	Can be overlaid
Best for	Swing/positional trades	All timeframes
Learning curve	Moderate	Lower

How to Use P&F Charts for NSE Trading

Identify the trend: Is the chart making higher X columns and higher O columns (uptrend) or lower (downtrend)?
Find the signal: Look for Double Top Breakouts (buy) or Double Bottom Breakdowns (sell/short). SpikeDesk highlights these automatically.
Confirm with delivery data: Combine P&F breakout signals with delivery percentage analysis. A P&F Double Top Breakout backed by rising delivery is a very strong signal.
Set stops using S/R: Place your stop-loss just below the last O-column low (for longs) or above the last X-column high (for shorts).
Use price targets: P&F charts have a built-in method for calculating price targets based on column count. Toggle Price Targets on the SpikeDesk chart to see projected moves.

Frequently Asked Questions

What is the difference between Point and Figure and candlestick charts?

Candlestick charts plot every time period. P&F charts only plot when price moves by a set amount (the box size), ignoring time completely. This filters out noise and sideways chop, showing only meaningful price movements.

What box size should I use for Indian stocks?

Use ATR-based box sizing (SpikeDesk default). This automatically calculates the right box size based on each stock’s volatility. Reliance might get a 30-rupee box while a small-cap gets a 5-rupee box.

Are Point and Figure charts still relevant today?

Absolutely. P&F charts are used by institutional traders precisely because they filter out noise. For swing and positional trading on NSE, they are arguably more useful than candlesticks.

What is a 3-box reversal in P&F?

A 3-box reversal means the price must reverse by at least 3 boxes before a new column starts. This filters out small pullbacks and only shows significant reversals.

Free P&F Charts for Every NSE Stock

ATR box sizing, breakout signals, S/R levels. All free.

Open P&F Charts →

Related: RRG Guide · Delivery % Guide · Sectoral RRG · 52-Week Scanner · Stock Lookup