Which one of the following statements is correct?
A) A point-and-figure chart depicts all of the closing prices of a stock over a period of time.
B) A point-and-figure chart consists of columns of X's and O's.
C) A typical bar chart uses vertical bars to show the closing price as well as the change in price from the previous day.
D) A sell signal occurs when prices break though a resistance line on a chart pattern.

Question

Quizplus · Accepted Answer

A point-and-figure chart is a type of chart used in technical analysis of stock prices. It consists of columns of X's and O's, representing increases and decreases in price, respectively. The chart does not depict all of the closing prices over a period of time, but rather focuses on significant price movements. Choices A, C, and D are incorrect.

Which One of the Following Statements Is Correct