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Creator : Definedge
The XO Count 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.
XO Count is an indicator that indicates the strength of price action and the amount of activity in the price pattern. There are two lines plotted below the chart when the XO count indicator is plotted. The green line shows the XO count, while the red line shows its average.
An “X” represents a bullish print on a P&F chart, whereas an “O” represents a bearish print. Thus, this indicator is a price-based indicator plotted on a chart.
This indicator calculates the number of boxes with ‘X’s and ‘O’s in the pattern. There is high activity and a high number of boxes are being printed, as evidenced by the rising indicator. The low reading of XO counts indicates a dull market.
A rising XO count above its moving average is an indication of high activity whereas a falling XO count below its moving average is an indication of low activity.
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 on RZone & TradePoint for all charting methods. 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.