Point & Figure [ARTech]

🔸🔸🔸 Point & Figure [ARTech] 🔸🔸🔸

Before jumping into the indicator settings, let’s take a step back and understand the logic behind Point & Figure charts. Unlike time-based charts, Point & Figure focuses purely on meaningful price movement. It filters out minor fluctuations and ignores time completely, helping you see market structure in a much cleaner way — trend, breakouts, and reversals become easier to spot.

To build a Point & Figure chart, two key parameters must be defined: Box Size and Reversal Amount.

📌 Box Size
Box size determines how much price movement is required to add a new X or O.
In this example, the box size is $20, meaning:
Every $20 rise adds one X upward
Every $20 drop adds one O downward

📌 Reversal Amount
Reversal amount defines how many boxes price must move in the opposite direction to start a new column.
In Point & Figure charts:

• Xs and Os never appear in the same column
• Each column contains only Xs or only Os

In this example:

• Box size = $20
• Reversal amount = 3 boxes

So a reversal requires a $60 move in the opposite direction.

📌 Point & Figure Graph (Step-by-Step)
Graph A
If the current column is an X column and price continues to rise, new Xs are added to the same column as long as the box size rule is met.
Graph B
When price falls by 3 boxes ($60), a new column begins to the right.
Three Os are placed starting one box below the highest X of the previous column.
Graph C
If price continues to fall, additional Os are added downward in the same column.
Graph D
If price then rises by 3 boxes ($60), another new column starts.
Three Xs are placed one box above the lowest O of the previous column.
Graph E
As long as price continues higher without another 3-box reversal, Xs keep extending in the same column.

For a deeper explanation of the theory and plotting rules, you can read my educational article here: https://www.tradingview.com/chart/BTCUSDT/YrHeMHOS-POINT-FIGURE/

📌 Key Features
Below are the main features of the Point & Figure indicator I developed, designed to make P&F charts clearer, more customizable, and easier to use directly on TradingView.

• Two Display Modes: This indicator includes two different Point & Figure display styles. Line Mode draws a simplified P&F line based on the active column value, while Classic Mode plots the traditional Point & Figure structure using real X/O columns and reversal logic.

• Optional Box Background (Line Mode): In Line Mode, you can enable an optional box-style background. This helps you visually follow each box step and makes reversals easier to spot, while still keeping the chart clean and readable.

• Full Point & Figure Engine: The indicator builds Point & Figure columns using Box Size and Reversal Amount rules. A column continues only while price extends in the same direction, and a new column is created only when price reverses by the defined reversal distance.

• Price Source Options (Close vs High/Low): You can choose between Close or High/Low as the price source. When High/Low is selected, the algorithm prioritizes continuation in the current trend direction first, and checks the opposite side only if the trend cannot be extended. This creates a more “classic” P&F behavior, especially on volatile candles.

• Box Size Methods (Fixed / Percentage / ATR): The indicator supports three box size assignment methods. Fixed uses a constant value, Percentage adjusts box size dynamically based on price level, and ATR adapts box size using volatility. This allows the chart to stay usable across different instruments and market conditions.

• ATR Locking for More Stable Columns: When ATR box size is selected, the indicator can lock the box size after each reversal. This means the active column keeps a consistent box size until the next reversal occurs, improving stability and avoiding frequent recalculation during the same swing.

• Classic Mode Controls (Offset & Max Boxes): Classic Mode includes additional controls such as horizontal offset and a maximum “last boxes” limit. These options help you place the P&F structure more clearly on the chart and keep performance smooth when drawing many boxes.

• Visual Customization: You can customize colors for rising and falling columns, borders, and reversal highlight areas. This makes it easy to match the indicator with your chart theme and improve clarity during live analysis.

• Optimized Drawing Behavior: To keep the chart responsive, the Classic X/O box drawing is optimized and focused on the most recent structure. This helps reduce object load and improves usability on lower timeframes.

📌 Why use this indicator?
Point & Figure charts are one of the best ways to filter market noise and focus only on meaningful price movement. Instead of printing a new bar just because time passes, this indicator updates only when price moves enough to fill a new box or trigger a reversal. This makes trend direction, breakouts, and key support/resistance levels much easier to read.

Another big advantage is accessibility. On TradingView, the built-in Point & Figure chart type is available only for Plus and higher plans. This indicator allows you to use a Point & Figure-style structure directly on your chart, without needing to switch chart types or rely on paid plan access.

🔸🔸🔸 How to Use 🔸🔸🔸

███████ Chart Type ███████

📌 Chart Type: Line
This mode draws Point & Figure structure as a clean line-based visualization. It’s ideal if you want a minimal look while still keeping the P&F logic.

In Line Style, you can customize how the line and its structure looks:

• Line: Enables/disables the P&F line plotting.
  
• Rising (X): Sets the line color when the active column is an X (up) column.
  
• Falling (O): Sets the line color when the active column is an O (down) column.
  

You can also enable the background box visualization:

• Box:[/b] Shows P&F “step boxes” behind the line, so you can visually track each filled box and reversal structure.
  
• Rising (X) and Falling (O) box colors: Sets the main box colors for normal price movement after the reversal zone. In other words, once the reversal area is passed, these colors are used for the regular X (up) and O (down) boxes that continue the column.
  
• Reverse Area colors: Colors the reversal zone based on your selected Reversal Box Amount. In other words, it highlights the boxes that represent the reversal distance (example: the 3-box reversal area) with a different color, so you can clearly see where a column change would be triggered.
  

📌 Chart Type: Classic(X/O Boxes)
This mode displays the traditional Point & Figure look using X and O columns, which is the most recognizable and “textbook” P&F style.

In Classic (X/O Boxes) Style, you can control the visual layout:

• Offset: Shifts the whole P&F structure left/right from the last candle, so it doesn’t overlap price action.
  
• Max Last Boxes: Limits how many recent boxes are drawn for better performance.
  
• X Fill / O Fill: Sets the fill colors for X and O columns.
  
• Border: Controls the outline color of the Classic boxes.
  

███████ Calculation Methods ███████

📌 Source
This defines which price data is used to evaluate box creation and reversals.

• Close: All decisions - box extensions and reversals - are made using closing prices only. If the close fills a box in the direction of the current column, new Xs or Os are plotted. If the close reaches the reversal amount in the opposite direction, a new column is started.
  
  
• High/Low: Uses the full candle range (High and Low). This makes the chart more responsive because intrabar extremes can trigger new boxes and reversals.
  
  The logic is priority-based:
  If the current column is X (up), the script checks High first to extend the up column. If it can’t extend, it checks Low for a reversal.
  
  If the current column is O (down), the script checks Low first to extend the down column. If it can’t extend, it checks High for a reversal.
  

📌 Reversal Box Amount
This is the classic Point & Figure reversal rule: how many boxes price must move in the opposite direction to start a new column.

Example:
If Reversal = 3, price must reverse by 3 boxes to switch from X → O or O → X.
Higher reversal values create fewer reversals (smoother structure). Lower values create more frequent reversals (more sensitivity).

📌 Box Size Method

• Fixed: Box size stays constant at your chosen value.
  
• Percentage: Box size scales with price, recalculated dynamically as price moves.
  
  Important behavior:
  In Percentage mode, the box size is not recalculated on every tick. Instead, each new box size is updated step-by-step, using the previous box level as the reference.
  
  This means the box size adapts gradually as price progresses: when a new box is confirmed, the next box size is computed based on the last printed box value.
  
• ATR: Box size is based on volatility using ATR.
  
  ATR mode behavior:
  ATR mode, the indicator locks the box size for each column. When the chart switches direction (for example from an X column to an O column), the script takes the ATR value at that reversal moment and uses it as the fixed box size for the entire new column. That box size will not change while the column keeps extending.
  
  However, reversal checks are still dynamic: the script monitors whether price has moved far enough to reverse by comparing the move against the latest ATR-based reversal requirement.
  
  So, the column’s boxes stay visually consistent, while the reversal decision can still react to current volatility.
  

📌 Fixed Box Size (only for Fixed method)
Sets the constant price movement required to print 1 new box.

Higher values = fewer boxes, smoother chart.
Lower values = more boxes, more detail.

📌 Percentage (only for Percentage method)
Defines the percent used to calculate each new box size.

Example:
1 means each new box is approximately 1% of price, rounded to the symbol’s tick size.

📌 ATR Length (only for ATR method)
Sets the ATR period used for volatility measurement.

📌 ATR Multiplier (only for ATR method)
Final box size is calculated as:
Box Size = ATR × Multiplier (rounded to tick size).

Higher multiplier = larger boxes, fewer reversals.
Lower multiplier = smaller boxes, more reversals.