Customer Support : 020-61923200, [email protected] | Call and Trade : 020-61923220
Creator: Definedge
Price Rekha 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.
The concept of Price Rekha is unique.
The P&F columns represent swing moves. In a P&F chart, an “X” represents a bullish print, while an “O” represents a bearish print.
The Price Rekha indicator calculates the most frequently appearing box-price over the specified period in columns X and O.
It is expected that the price will respect that level when it retraces back to it.
In the price Rekha indicator, there are two lines plotted. The green line is the most frequently tested bullish price, and the red line is the most frequently tested bearish price.
The price is expected to remain within these lines during normal or choppy market conditions.
Price movement above these two lines indicates a strong trend. The momentum is expected to continue to grow. It is expected that the price will fall significantly if it falls below these two lines and sustains below them. It is also possible to use these lines as stop-loss levels.
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.