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2013issue C0345-51

Combine a Point and figure chart and Moving-average crossover inside one System optimization procedure

The archive workflow treats a Point and figure chart and Moving-average crossover rules as inputs to one System optimization procedure. Users pick dates, average types or combinations, then run system tests to compare entry, exit, and parameter rule sets.

  • A Point and figure chart ignores clock time and records only price movement that meets the chosen box size, so smaller moves do not create a new box.
  • A two-average optimizer can restrict buys to a shorter-term average crossing above a longer-term average, while a three-average setting requires the short average to cross above the medium and the medium to cross above the long.
  • Indicator optimization dialogs expose date ranges, period steps, optional signal delay, and two distinct breach tests: the indicator itself versus a moving average of the indicator crossing a specified level.
  • System optimization treats entry, exit, and parameter search as one procedure: users pick dates, average types or combinations, and then run system tests to compare rule sets.
Entries in this reading3 entries
Current trackPoint and figure chart37 readingsSystem optimization85 readingsMoving-average crossover108 readings

Entry, exit, and search in one pass

The reviewed workflow treats entry, exit, and parameter search as one procedure. Users pick dates, average types or combinations, and then run system tests to compare rule sets. A Point and figure chart and Moving-average crossover settings appear inside that System optimization pass.

Box size instead of clock time

Point-and-figure construction ignores clock time and records only price movement that meets a user-chosen box size, so smaller moves do not create a new box.

A platform review illustrates a 60-minute Point and figure chart of QQQ with a 0.05 box size, including a volume histogram and a date-time stamp useful for later analysis.

Two-average and three-average confirmation

A two-average optimizer can restrict buys to a shorter-term average crossing above a longer-term average, while a three-average setting requires the short average to cross above the medium and the medium to cross above the long.

What the optimization dialog makes testable

Indicator optimization dialogs expose date ranges, period steps, optional signal delay, and two distinct breach tests: the indicator itself versus a moving average of the indicator crossing a specified level. Those dialog choices belong to the same procedure that selects entry and exit rules and then runs system tests to compare rule sets.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
26 of 30 in the Point and figure chart track
201558-58 pp.Next on Point and figure chartPoint-and-figure time and volume limits are conventions to testPoint-and-figure construction has been left unchanged for more than 130 years: directional X and O columns continue until price reverses by the chart's chosen reversal amount.
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 fieldSystem design117 readingsBy year201398 readings
All 37 readings tagged Point and figure chart
Also on Point and figure chart5 readings
2004Volume-weighted column averages and crossovers on point-and-figure charts1988Constructing intradaily point-and-figure boxes and pivot ladders1988Constructing trend definitions with filters and lines1988Remaining life on a percent-filtered swing chart1989Adjusted net asset value, tighter reversals, and written stops on a fund point-and-figure chart