In the context of a point and figure chart, a horizontal band of Xs and Os is a ________.
A) buy signal
B) sell signal
C) congestion area
D) trend reversal

Question

Quizplus · Accepted Answer

A horizontal band of Xs and Os on a point and figure chart is known as a congestion area. This signifies a period of consolidation or indecision in the market, where neither bulls nor bears are in control. It is not a buy or sell signal, nor does it indicate a trend reversal.

In the Context of a Point and Figure Chart, a Horizontal