Point and Figure Chart Base Period

[monpere]

Can someone point me to documentation explaining "Base Period Type" and "Base Period Value" and how they relate to and affect NT P&F Charts? I have been looking at documentation for traditional P&F charting and have not been able to find these concepts.

[NinjaTrader_Jason]

Hello monpere,

Unfortunately this is not reflected in our help documentation.

The Base Period Type/Value will set the base from where the P&F boxes are build. A base is required in order to start calculating what boxes and columns would be created out of the underlying price action.

[monpere]

Why does Base Period affect how the chart looks? A chart with a Box Size of 1, and Reversal Value of 3, and Base Period of 4 Ticks, has many more columns (bars) for the trading session then a chart with the same params but a Base Period of 250 Tick. Why does the chart look different? As I understand it a P&F chart with Box size 1, and Reversal of 3, creates a new X or O every 1 tick above/below the current column, and creates a new column every 3 ticks pull back from the top/bottom of the column. Why does that behaviour change based on Base Period Type? Please explain what exactly is happening in the 2 cases above for 4 Tick and 250 Tick Base Period.

[NinjaTrader_Jason]

When using a base of 4 tick, the historical P&F X/O's & columns are based off a 4 tick chart. A base of 250 tick will build the historical X/O's and columns based off a 250 tick chart.

Historical P&F data is different when using a different base because historical P&F data is build by the OHLC values of the base you select.

In addition, more information regarding the different bar types we provide can be found in our help guide at the link below.

http://www.ninjatrader.com/support/helpGuides/nt7/bar_types.htm

[monpere]

When using a base of 4 tick, the historical P&F X/O's & columns are based off a 4 tick chart. A base of 250 tick will build the historical X/O's and columns based off a 250 tick chart.

Historical P&F data is different when using a different base because historical P&F data is build by the OHLC values of the base you select.

In addition, more information regarding the different bar types we provide can be found in our help guide at the link below.
http://www.ninjatrader.com/support/h.../bar_types.htm

So, you are saying that Base Period Type and Value, only affect how the historical data on the chart is displayed, but when the chart starts updating live, then the Base Period Type and Base Period Value are irrelevant, and are not used in building the live X/O columns on the chart? Is that correct?

[NinjaTrader_JoshP]

monpere,

To clarify, if you are on the latest version of NT7 the PnF chart will update the X and Os only as the underlying base period closes. So if it was a base period of 1min, the X and Os would update at the end of every single minute. Whether that means it draws a new X or O, starts a new column, or remains the same depends on what exactly was contained in that 1min bar.