A chart used to show only significant price changes, regardless of their timing, is the
A) candlestick chart.
B) multiple indicator chart.
C) bar chart.
D) point-and-figure chart.
E) point-and-click chart.

Question

Quizplus · Accepted Answer

A point-and-figure chart is specifically designed to show significant price changes by using Xs and Os instead of price bars or candlesticks. It only records price movements that meet a certain threshold, such as a certain percentage or amount, rather than showing every minor fluctuation in price. This makes it easier for traders to identify trends and make trading decisions based on major price movements rather than noise.

A Chart Used to Show Only Significant Price Changes, Regardless