Wonderful job, Eric. As you know I use the Chartcraft method with regard to vertical counts and price objectives. Though your explanations and examples were excellent, as someone who knows the method, my confusion in reading the post came from your discussion of bullish/bearish sell/buy signals that are used in conjunction with the current buy or sell signal that is prompting the vertical count. Others probably got it, but for those who didn't, maybe you might add the following to your thought process:
When computing a bullish (upside) price objective when a stock gives a buy signal, find the lowest price on the chart the stock fell to while on the LAST SELL SIGNAL (make sure you find the lowest O box the chart reached while on the MOST RECENT SELL SIGNAL ) and follow the rest of the rules that Eric outlined.
When computing a bearish (downside) price objective when a stock gives a sell signal, simply find the highest price the stock rose to while on the LAST BUY SIGNAL (make sure you find the highest X box the chart reached while on the MOST RECENT BUY SIGNAL) and follow the rest of the rules that Eric outlined.
With regard to the incomplete vertical count, Eric said the following:
>>>C. Sometimes a Count Signal is incomplete. That is, there is no reversal from that column. That's OK, do the math anyway and consider it incomplete.<<<
To add an addendum to that statment, the vertical price objective count will become complete when the column does eventually reverse into a column of O's or X's. For example, if you are in a column of O's and you are dependent on that O column for your final downside price objective, when the stock's price finally has it's 3 box reversal, you will now have a complete column of O's to compute your downside price objective. Conversely, if you are in a column of X's and in an incomplete upside price objective vertical count situation, when that stock reverses course by 3 boxes, you now have your finite box of X's and your count is now complete.
Eric, you did a wonderful job of explaining the vertical count and I hope this helps to add to Nancy's understanding of how to compute price objectives.
Bruce |
