Point & Figure Cell Reversal Threshold

Point & Figure: Cell Reversal Threshold

In Point & Figure charting, advancing from a column of X's to O's (and vice versa) is only possible when the stock makes a "dramatic" price reversal from it's current direction. The Cell Reveral Threshold reversal threshold defines how "dramatic" the price reversal must be.

By default, Insider TA uses 3, which is a commonly used value. Basically, this means if a stock is generally rising (i.e., in a column of X's), then we can only shift over into a column of O's if the stock's price drops by an amount that translates to 3 cells. What does 3 cells translate to, in terms of price distance? That depends, because cell sizes vary among various price ranges, which is also configurable.

Insider TA™ v5.3