Point & Figure Pseudocode

pnf_pseudocode.txt

If previous day’s plot_symbol = "X", then:

  If current price >= previous price, then:
      Today's plot_symbol = "X".
      and copy yesterday's signal_name to today.

      And if today's price is higher than the last high_point:
          then make today's price the high_point,
          and copy yesterday's signal_name to today.

      And if today's price is higher than the high point from the last X column:
          then today's signal_name = "BUY"

  Else if today's price is less than the previous high times 1 - reversalAmount:
      the plot_symbol reverses to "O",
      and the low_point is today's price,
      and reversal = 1,
      and prev_high_point = last_high_point, saving this value to use in the Target Price calc below
      and last_high_point = most recent high_point
      and entry_o = previous day's closing price, used in next_entry and stop_loss calcs

      And if today's price is lower than the last_low_point from the last O column:
          then today's signal = "SELL".
      Else:
          copy yesterday's signal to today

  Else:
      plot_symbol = "X" (price is down but not enough to trigger a reversal)
      and copy yesterday's signal to today.

If previous plot_symbol = "O", then:

If current price <= previous price, then:
  Today's plot_symbol = "O".
  and copy yesterday's signal_name to today.

  And if today's price is lower than the most recent low_point, 
      then make today's price the low_point.
      and copy yesterday's signal_name to today.

      And if today's price is lower than the last_low_point from the last O column,
          then today's signal = "SELL".

  Else if today's price is greater than the last_high_point, times 1 + reversalAmount:
      the plot_symbol reverses to "X",
      and the  high_point is today's price,
      and reversal = 1,
      and prev_low_point = last_low_point, saving this value to use in the Target Price calc below
      and last_low_point = low_point
      and entry_x = previous day's closing price, used in next_entry and stop_loss calcs

      and if today's price is higher than the high point from the last X column:
          then today's signal_name = "BUY".

      Else copy yesterday's signal_name to today.

  Else:
      Plot Symbol = "O" (price is up but not enough to trigger a reversal)
      and copy yesterday's signal_name to today.

Set high_point = current "high_point"
Set low_point = current "low_point"
Set last_high_point = current "last_high_point"
Set last_low_point = current "last_low_point"
Set prev_high_point = current "prev_high_point"
Set prev_low_point = current "prev_low_point"

If current signal_name = “BUY”
    Set next_entry at one boxSize up from the price at the last reversal from X to O, which should be near the top of the previous X column
    Set the stop_loss at one boxSize down from the price at the last reversal from O to X, which should be near the bottom of the previous O column

    If previous signal_name = “SELL”:
        Upon reversal from SELL to BUY, set the target_price equal to the size of the previous X column, times the boxSize, added to the bottom of the previous X column. Once calculated, it does not change for the balance of the current BUY signal.

Else:
    Set next_entry at one boxSize down from the price at the last reversal from O to X, which should be near the bottom of the previous O column
    Set the stop_loss at one boxSize up from the price at the last reversal from X to O, which should be near the top of the previous X column

    If previous signal_name = “BUY”
        Upon reversal from BUY to SELL, set the target_price equal to the size of the previous O column, times the boxSize, subtracted from the top of the previous O column. Once calculated, it does not change for the balance of the current SELL signal.

Set entry_x = current "entry_x"
Set entry_o = current "entry_o"