Why the misnamed ‘Traditional’ method of Point and Figure box sizing has no place in the 21st Century
Point and Figure “Guru” Jeremy du Plessis writes: When Point and Figure charts were used in the late 18th and first half of the 19th century, prices were low and so box sizes of ¼. ½ or 1 point were used. The charts were all plotted on an arithmetic scale. Each X and O had the same points value. The same vertical distance, i.e. the same number of Xs or Os, represented the same number of points. So a move of 5 Xs or Os would represent the same move in price no matter what the current price.
See his full article HERE. He makes a very important point concerning P&F construction. It is rarely done properly. P&F is very effective for technical analysis giving a superior target and reducing noise. But it must be constructed correctly. Students, please read this article.