Reversal Amount: In Point & Figure charts, the reversal amount is the number of boxes required to be retraced to cause a reversal, and thus, a move to the next column and opposite direction.
Reversal Amount
The amount of price movement required to shift a chart to the right. This condition is used on charts that only take into consideration price movement instead of both price and time.
Ripple ...
Reversal amount refers to the change in price, up or down, needed to create a new column. Using a standard 3-box reversal in the example above, prices would have to decline to 55 before the chart would begin a column of O's.
However, if the current column is an X-column, then a new column will be started to record the O, but only if the price decrease is greater than the reversal amount. The 1st P&F charts used a reversal amount equal to 1 box size.
In order to change columns (e.g., from an X column to an O column), prices must reverse by the "reversal amount" (another value you specify) multiplied by the box size.
However, if prices reverse by a reversal amount, a new kagi line is then drawn in a new column. When prices penetrate a previous high or low, the thickness of the kagi line changes.
The chart also has a box reversal amount that determines how many boxes must occur in the opposite direction before it is seen as a reversal. Only once the price is seen as having reversed is a new column started.
Reversal Amount: The size of reversal before another column is added to a Point & Figure chart.
To start a new column (for example to switch from an X column to an O column), prices must reverse by your "reversal amount" (another user specified value) multiplied by the box size. E.
If a day's closing price moves in the opposite direction to the trend by more than the reversal amount, draw a short horizontal line and a new vertical line, beginning from the horizontal line to the new closing price.
Every column in the chart can contain either X's or O's but not both. When prices reverse, they must reverse by a reversal amount that is then multiplied by the box size before a new column is created.
The line will not change directions until the price moves below the bottom of the Kagi line by more than a predetermined reversal amount, which is usually 5%, ...
Subsequently, compare the closing price to the top or bottom of the previous kagi line. A new kagi line is started if price reverses by a set ‘reversal amount' to the new closing price, otherwise no lines are drawn.
If the pre-determined "reversal amount" reverses the closing price, an opposite-directed Kagi line appears in the following column. The thickness of the Kagi line changes when closing prices modify previous column to make it higher or lower.
 See also: Reversal, Charts, Chart, Trading, Point
  
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