General Market Question
What is the difference between the two types of P&F charts?
Investors Intelligence shows two types of Point and Figure charts. One is the regular P&F and the other is a "Relative" P&F. The only difference I see is that the column of Xs or Os is generally shorter in the relative P&F. Am probably missing something.
Does anyone know the difference?
Asked by SharonMR in
General Market
one year ago
Best Answer
676 points
RobSmith answered one year ago …
The Relative P&F seems to be comparing the performance of the stock to an index (either the Dow or the S&P) - so it's stock price divided by index price. So if the stock goes from 20 to 21 (5% move), meanwhile the index goes up by 10%, paints a much different picture than simply studying the stock by itself.
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