P&F breakouts occur when an instrument reverses its trend, as determined by the point & figure chart. Bull breakouts occur when an instrument’s price rises one box above the prior column of “X”s. Bear breakouts occur on a move to one box below the prior column of “O”s.
Targets are determined from a multiple count of three times the move from the low or high. Stop levels are set at the point at which the P&F trend would reverse.