Point and figure has two parameters: box size, the price move needed to add one X or O, and reversal, usually three boxes, the move needed to start a new column. A rising column of Xs continues while price makes new boxes up; a three-box fall starts an O column.
Because it only records meaningful movement, P&F produces very clean horizontal support and resistance and simple signals such as a double top buy, where an X column exceeds the previous X column.
P&F also gives mechanical targets through vertical and horizontal counts, for example column height in boxes times box size times the reversal. These counts are rules of thumb with no statistical guarantee. The chart's honest strength is decluttering, not prophecy.
Related: renko-chart, kagi-chart, support