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Strategies & Market Trends : Point and Figure Charting

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To: P. Ramamoorthy who wrote (909)2/20/1998 11:14:00 AM
From: Ben Antanaitis  Read Replies (1) of 34814
 
Ram,

It's all relative... ;-)

For volatile stocks, the patterns can develop quickly, and P&F can be used for trading.

IF one really wants to see faster patterns then adjusting the number of boxes for a reversal from 3 to say 2 will change the short term look of the chart and the column turn arounds will happen more frequently and sooner than a 3 box reversal chart. But this is not what Tom teaches, it is a variation on the Traditional techniques.

For less volatile stocks the patterns take longer to mature.

The RS charts typically take longer because it takes longer for market or the sector has to have an overall direction change.

Ben A.

PS Even if you are using P&F for 'trading' the chart will show the longer term patterns if you have enough data to go back in time.
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