Every column in the chart can contain either X's or O's but not both. When prices reverse, they must reverse by a reversal amount that is then multiplied by the box size before a new column is created. A new column therefore signals a change in the price trend. For Point and Figure Charts, only significant prices changes are depicted on the chart. The usual box size is 1 or 2 points for medium priced stocks and 3 to 5 points for higher priced stocks. Reversal amounts are usually defined as being double or triple the box size.
