Date/Time: Fri, 19 Jan 2018 23:42:32 +0000
Post From: 1 Box Reversal Point & Figure Chart With 'One-Step-Back'
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Jeremy du Plessis's The Definitive Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method/i] is indeed a finely done and definitive work on the history, construction, use and interpretation of Point & Figure charts in their various configurations.
du Plessis spends considerable time discussing the important 1 Box Reversal P&F as this chart is of particular value to the short term, intraday trader. Among P&F charts, a feature totally unique to 1 Box Reversal P&F's is that they must be so constructed as to permit the display of both X's and O's in the same column when permitted under 'one-step-back'. One-step-back is a simple rule unique to 1 Box Reversal P&F's and is easy to provide for in P&F software applications. If the 1 Box Reversal P&F is not constructed using one-step-back, it "has important implications for analysis of congestion and establishing price targets" per du Plessis.
du Plessis writes, "Figures 2-8 and 2-9 [in Chapter 2] show the wrong way and the right way to construct a 1-box reversal Point and Figure chart. Unfortunately, the wrong way, where a new column is started every reversal, is sadly seen all too often."
Sierra Chart has a very good Point and Figure study, but it lacks one-step-back for 1 Box Reversal P&F's. Please consider adding this important feature in a future release.