Point and Figure (PnF) Moving Averages Histogram

The Point and Figure (PnF) Moving Averages Histogram indicator provides a live, non-repainting momentum oscillator based on Point and Figure charting logic to filter noise and highlight significant trend shifts.

Usage

The Usage section describes how the script can be used to identify trend direction and momentum transitions. Unlike standard histograms based on time-based bars, this tool calculates moving averages from PnF columns, which only advance when specific price movement thresholds (box size and reversal) are met.

• Trend Identification: When the histogram is above zero, the fast PnF moving average is above the slow moving average, indicating bullish momentum. Conversely, values below zero indicate bearish momentum.
• Momentum Strength: The color-coded columns indicate whether the distance between the two moving averages is expanding or contracting. Bright green/red columns show strengthening momentum, while darker shades suggest a potential slowdown or mean reversion.
• Filtering Noise: By adjusting the Box Size and Reversal settings, you can filter out minor price fluctuations that would typically cause "whipsaws" on a standard time-based moving average crossover.

Details

The script features an internal PnF engine that calculates columns independently of TradingView's integrated PnF chart type. This allows the indicator to overlay PnF logic onto standard time charts.

Moving averages on PnF charts are calculated using the average price of each column (Open + Close) / 2. Because PnF columns already act as a primary filter, the resulting moving averages are "double smoothed." Users are encouraged to use shorter lengths (e.g., 1 and 5) compared to traditional time-based indicators to maintain responsiveness.

Settings

PnF Configuration

• Method: Determines how the box size is calculated (User Defined, ATR, Traditional, or Percentage).
• ATR Period: Sets the lookback period for the box size when the "ATR" method is selected.
• Box Size: Sets a fixed price increment for the "User Defined" method.
• Percentage %: Sets the box size as a percentage of the current price.
• Reversal: The number of boxes required to switch from a bullish (X) column to a bearish (O) column and vice-versa.
• Source: Choose between "close" or "hl" (High/Low) to drive the PnF column logic.

Moving Averages

• MA Type: Select between EMA (Exponential Moving Average) or SMA (Simple Moving Average).
• MA Source: Choose between "Average Price" of the column or the "Close Price" of the column.
• Fast MA Length: The period for the leading moving average.
• Slow MA Length: The period for the lagging moving average.

FAQ

How does the "Traditional" box size work? The traditional method uses a predefined table where the box size automatically adjusts based on the price of the asset (e.g., a 1.0 box size for prices between 20 and 100).

Why does the histogram not update on every bar? The histogram only updates its internal calculation when a new PnF box or column is formed. If the price remains within the current box/reversal range, the PnF values remain static.

How do I access this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.