Point-and-figure cause count

What it is

Following the law of cause and effect, Wyckoff traders measure a range's width on a point-and-figure chart to project how far the next trend may go. Count the columns across the range along a chosen line (usually the line of the last point of support), then multiply: columns × box size × reversal amount. Add that to the low of the range (or subtract it from the high, for distribution) for the target.

The count gives a rough objective, often shown as a band from a minimum to a maximum count. It's a guide for targets, not a promise.

How to spot it

• Build a point-and-figure chart with a fixed box size and reversal (often 3-box).
• Count the columns across the range at the LPS line.

How to use it

• Use the projection as a profit target and to judge whether a trade's reward is worth it.
• Count in phases, adding columns as the range extends.

Common mistakes

• Changing the box size until the target looks good.
• Treating the projection as a level price must reach.

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