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2005issue C011-5

Box-series transforms for trend and channel work

Walking a point-and-figure plot in print order yields a box-series that can be redrawn as a line chart interchangeable with the original grid. A confirmation-average and a box-series-macd can then sit on the same reconstructed axis, including change-only and time-extended forms.

  • Walking a point-and-figure plot in print order produces a box-series that can be redrawn as a line chart interchangeable with the original grid.
  • The box-series is a price study that applies adaptive nonlinear smoothing and adaptive compression of unequal time spans in one step.
  • A confirmation-average of a sequentially indexed box-series, and a box-series-macd on a change-only-box-series, can be read against the reconstructed boxes on the same axis.
  • A time-extended-box-series keeps the bar clock, recovers ordinary top and bottom signals, and lets close-only versus high/low inputs and two-box versus three-box reversal counts be compared on the same bars.
Entries in this reading3 entries
Current trackPoint and figure chart37 readingsMACD115 readingsMoving average449 readings

From printed boxes to a line series

Walking a point-and-figure plot in print order and recording each box value yields a numeric series. That box-series can be redrawn as a line chart interchangeable with the original grid.

The box-series is a price study that applies adaptive nonlinear smoothing and adaptive compression of unequal time spans in one step. Box-height is the vertical price increment that defines one box. Reversal-count is how many boxes price must travel against the active column before a new column is opened.

S&P 500 box-series on a sequential index

Traders should see the reconstructed S&P 500 box-series as an ordinary rising line: a base near 820, a sharp lift through the mid-900s, a mid-run pause around 970–1000, then a push toward 1090. Approximate closes were read from the published sequential-index candlesticks, not from a table.
Traders should see the reconstructed S&P 500 box-series as an ordinary rising line: a base near 820, a sharp lift through the mid-900s, a mid-run pause around 970–1000, then a push toward 1090. Approximate closes were read from the published sequential-index candlesticks, not from a table.SPX · 10-point box, three-box reversal · 0353-01-01T00:00:00.000Z to 0497-12-31T00:00:00.000Z

The source built PF(SPX) with a 10-point box and a three-box reversal. Y-values are visual reads to the nearest five points; the first x-label is cropped by the FDC mark and is taken as 353.

A confirmation-average on the box-series

A 15-period moving average of a sequentially indexed box-series can be plotted as a confirmation overlay. It tends to sit above the series on down moves and below it on up moves, with heavy overlap as a warning that a move may be losing force.

The confirmation-average is a moving average of a box-series used to judge whether a move still stands away from its own smoothed path.

A change-only-box-series and box-series-macd

A change-only-box-series records the current box on each date the box changes and skips filled intermediate boxes, so each point has a calendar date and keeps how quickly price crossed boxes.

MACD applied to the change-only-box-series can diverge from that series, which can be inspected as a condition that the active move may be changing. A box-series-macd is a MACD computed on a box series so oscillator swings can be compared with the reconstructed boxes themselves.

A time-extended-box-series and recoverable signals

Time-extended construction steps one square right on every bar and records only the current box, repeating unchanged values. The time-extended-box-series is a same-period smoother from which ordinary tops, bottoms, and double- or triple-top signals remain recoverable.

Parallel inputs and a recovered display

Close-only versus high/low inputs, and two-box versus three-box reversal counts, can be plotted as parallel time-extended series so earlier reversals versus extra false turns can be compared on the same bars.

Expanding one-box-reversal box data into four-column rows and plotting those rows as candlesticks recovers a renko display for a chosen box-height.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
22 of 30 in the Point and figure chart track
20061-3 pp.Next on Point and figure chartConstructing bearish point-and-figure support breaksOn a point-and-figure grid, repeated failed selloffs at one support box remain a bottom-retest structure until a later column prints through that box.
All readings on this track · 30 readings
  1. 1988Constructing trend definitions with filters and lines
  2. 1989Reversal count as the clock on point-and-figure charts
  3. 1989Point-and-figure setup and session-average entry windows
  4. 1989Two-scale point-and-figure trendlines and stop placement
  5. 1989Adjusted net asset value, tighter reversals, and written stops on a fund point-and-figure chart
  6. 1990Stack option odds after point-and-figure signals
  7. 1991Constructing a point-and-figure downtrend-break
  8. 1991Constructing point-and-figure box and reversal charts
  9. 1991Constructing a close-tested one-two ladder on a point-and-figure chart
  10. 1992Point-and-figure, breadth, and volume as falsifiable hypotheses
  11. 1992Three-gate stock selection with ranks and point and figure
  12. 1993Constructing combined stochastics and point-and-figure relative strength
  13. 1997Point-and-figure box scale and reversal construction
  14. 2000Cotton weekly point-and-figure: late-stage decline, named weekly close
  15. 2000Constructing point-and-figure charts for support, resistance, and breakouts
  16. 2001Swiss franc: seasonal permission and a weekly point-and-figure breakout
  17. 2001Constructing point-and-figure boxes and reversals
  18. 2002Point-and-figure construction: box, live column, and three-box reversal
  19. 2003E-mini point-and-figure box-size and a descending-triangle breakout
  20. 2003A reconstruction critique of point-and-figure daytrading
  21. 2004Point-and-figure column moving-average crossovers
  22. 2005Box-series transforms for trend and channel work
  23. 2006Constructing bearish point-and-figure support breaks
  24. 2008Point-and-figure forex breakouts and triangles
  25. 2012From tactile charts to written trade rules
  26. 2013Combine a Point and figure chart and Moving-average crossover inside one System optimization procedure
  27. 2015Point-and-figure time and volume limits are conventions to test
  28. 2016Measurement-first critique of indicator defaults
  29. 2017Point-and-figure construction, reversals, and column-based overlays
  30. 2019A 2019 charting case as a three-check trend classroom
By fieldTrend and channels181 readingsBy year2005104 readings
All 37 readings tagged Point and figure chart
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