Which of the following is a characteristic of point and figure charts?

Point and figure charts are distinguished by their straightforward approach to technical analysis, particularly with regard to trading rules. One of their defining characteristics is that they have clearly defined trading rules that help traders identify buy and sell signals. These rules are based on price movements rather than time, making point and figure charts unique compared to other chart types.

For instance, a common rule might be to buy only when prices rise a certain amount (measured in points) and to sell when they fall by a similar amount. This systematic method simplifies decision-making for traders, allowing them to focus on important price changes without the noise that might be seen in time-oriented charts.

Other characteristics of point and figure charts include their ability to filter out minor fluctuations and concentrate on significant price movements. This is why the statement regarding their simplistic rules stands out as the accurate representation of their essence.