In technical charting, how do Point & Figure charts and Renko charts differ fundamentally from standard Candlestick or Bar (OHLC) charts?

[ A ]Point & Figure charts plot employee salaries, while Candlestick charts plot corporate income tax rates.

[ B ]Point & Figure and Renko charts filter out time and minor price noise by plotting price movements only when price moves by a pre-set box/brick size (ignoring time intervals), whereas Candlestick/Bar charts plot Open, High, Low, Close across fixed time periods.[ CORRECT ]

[ C ]Renko charts are illegal in India under SEBI regulations, while Candlestick charts can only be viewed once a year.

[ D ]All four chart types are completely identical and plot continuous single lines of daily closing prices only.

Takeaway

Option B is correct: Point & Figure and Renko charts filter out time and minor price noise by plotting price movements only when price moves by a pre-set box/brick size (ignoring time intervals), whereas Candlestick/Bar charts plot Open, High, Low, Close across fixed time periods.

Derivation

Chart types vary in how they handle price versus time: (1) Standard Time-Based Charts (Bar/OHLC and Candlestick) display price action (Open, High, Low, Close) over fixed calendar intervals (1-min, daily, weekly), capturing intra-period volatility and candlestick psychology. (2) Non-Time-Based Charts: Point & Figure charts use X (rising) and O (falling) columns plotted only when price surpasses a defined 'box size', completely filtering out time and low-volume noise to highlight pure support/resistance breakouts. Renko charts use fixed-sized 'bricks' constructed purely on price changes, creating clean trend-following visualizations. This tests chart taxonomy. The common trap is assuming all charts are time-dependent.

Why the others fail

A — Point & Figure charts plot employee salaries, while Candlestick charts plot corporate income tax rates.

Technical charts track market trading prices and volumes of securities, not employee salaries or corporate tax rates.

C — Renko charts are illegal in India under SEBI regulations, while Candlestick charts can only be viewed once a year.

Renko and Candlestick charts are standard, fully legal technical analysis tools widely supported on Indian trading terminals.

D — All four chart types are completely identical and plot continuous single lines of daily closing prices only.

Line charts plot single continuous closing prices, whereas OHLC, Candlestick, P&F, and Renko use distinct multidimensional formats.