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2003issue C091-4

E-mini point-and-figure box-size and a descending-triangle breakout

A one-minute e-mini case rejects an automatic high/low box and uses close-as-price-field with a 0.33 box so a three-box reversal-size equals a one-point loss limit. The same descending-triangle is then read on the bar chart and on the point-and-figure columns.

  • Point-and-figure posts a mark only after price covers the chosen box-size and treats elapsed time as optional reference, not as a plotting input.
  • Close-as-price-field with a 0.33 box made a three-box reversal-size equal a one-point loss limit, so each column-color-flip sat on that limit.
  • The descending-triangle on the one-minute bars was the same structure on the point-and-figure columns, including a later breakout-through-prior-rows.
  • An overlay counts as confirmation only if the column actually changes when price direction changes; otherwise the box is treated as mismatched to the trading style.
Entries in this reading3 entries
Current trackPoint and figure chart37 readingsTriangle pattern55 readingsBreakout confirmation172 readings

Point-and-figure ignores clock time

Point-and-figure posts a mark only after price covers a chosen box-size, the minimum increment that must be fully covered before a new X or O is posted. Elapsed time can sit beside the chart as optional reference. It is not a plotting input.

A common construction sets reversal-size at three boxes. A new column starts only after price travels at least three boxes against the active column.

Why the automatic box was rejected

On a one-minute e-mini example, an automatic 0.64 box built from the high/low range was judged a poor fit for the intended trade and inconsistent with traditional construction.

Switching to close-as-price-field, plotting each bar's close rather than its high/low range, and a 0.33 box made a three-box reversal equal a one-point loss limit (3 x 0.33 = 0.99). Each column-color-flip, the change from an advancing column to a declining column or the reverse, was then aligned with that limit.

The same descending-triangle on both charts

A descending-triangle marked on the one-minute bar chart was the same structure being read on the point-and-figure columns. That pattern is a narrowing range with a falling upper boundary and a flatter lower boundary, read as a breakout question.

The reading included later reverse-color rows that undercut the previous two rows, a breakout-through-prior-rows test of whether the prior structure had failed. The descending-triangle was marked at 11:31 on each compared display and treated as cross-chart confirmation of the same turning area.

When an overlay is allowed to confirm

An overlay indicator is treated as confirmation only if the point-and-figure column actually changes when price direction changes. If the column does not change, the box is treated as mismatched to the trading style.

The same method can be scaled by changing box-size and reversal-size, including smaller boxes and tick data for shorter-horizon work.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
19 of 30 in the Point and figure chart track
20031-2 pp.Next on Point and figure chartA reconstruction critique of point-and-figure daytradingA reconstruction with a 0.33 box-size and a reversal rule produced a session-trade-count above 70 on one e-mini session and above 60 on the prior session.
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 year2003104 readings
All 37 readings tagged Point and figure chart
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1997Point-and-figure box scale and reversal construction2008Point-and-figure forex breakouts and triangles1989Reversal count as the clock on point-and-figure charts2000Constructing point-and-figure charts for support, resistance, and breakouts2000Cotton weekly point-and-figure: late-stage decline, named weekly close