PnF base period value

[Grantx]

What does base period type and base period value have to do with anything?

As I understand it, if I set a box size of 2 ticks, then the following applies:

1. For every 2 ticks bid in price, a corresponding X is created.
2. For every 2 ticks offered in price, a corresponding O is created.

For a reversal to occur and a new column to appear, price has to reverse and close by 2 ticks. As an example:

Price goes 18,20,22,24. (4 x's on my chart)
Price goes back down to 22 (a new column is created and an O is printed.)

Can you please explain how the 'reversal', 'base period type' and 'base period value' fit into this picture?

Thanks.

[NinjaTrader_DrewO]

Hello,

Thanks for posting.

The Base Period Type and Value setting will determine the base from where the Point & Figure 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.