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Creator: Definedge
The price by time indicator is a point-and-figure chart indicator developed by Prashant Shah.
The indicator is designed using the X, O, and vertical column properties of the Point & Figure chart.
Columns in the Point & Figure charts represent swing moves. Therefore, the number of days in any column is not fixed. The minimum number of days in the column will be 1, but there is no maximum number. Column will be changed when the reversal criteria is met.
The length of the column in the P&F charts shows the strength of the trend. A column with a high number of boxes indicates a strong column with a lot of activity. It shows that the trend and momentum of the pattern are strong.
Price by time indicator divides the length of the column by the number of days in order to determine the time taken to produce the number of boxes recorded in the swing move.
The long time taken in comparison to the length of the column suggests a tight range consolidation that did not even result in a reversal of the column. The lower time taken to produce a significant number of boxes shows a strong trend.
This indicator is also included in the system builder, which can be used to develop different trading strategies.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
This indicator is also available in the System Builder of RZone & TradePoint. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.