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Box Size

You choose the box size. The box size is typically an easily divisible number. For example, if you were constructing a point and figure chart on gold futures, you might assign each box the value of 3 points. If a rally were under way and Xs were being plotted, a new X is added to the top of the column with each 3-point gain. If prices were falling and Os were being plotted, an O would be added to the bottom of the column with each 3-point loss.

See also:

Fractional Box Sizes