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Strategies & Market Trends : Point and Figure Charting
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To: genaro who wrote (8326)10/7/1998 10:46:00 AM
From: Ms. X  Read Replies (1) of 34811
 
The price objective is a confusing thing especially when you have
charts giving lots of buy and sell signals.

First thing to remember on a price objective to the upside, look for
the last signal. You need a sell signal followed by a buy signal. The
buy signal reverses the sell signal and allows the count to begin.
You then need another reversal down into O's, without a sell, to exact
the count. That even sounds confusing to me.
In the case of Apple, we can't get a PO because it is on a sell signal
without reversing and giving a buy yet.

------------X --<--Final count is 15 X's.
X O
X O
X O
X O<-The reversal down without a sell to exact the count
------------X --
X Med
X
X <-Here is the buy signal off the sell signal
X X
X ------X O X ----
X O X X O X
X O X O X O X
X O X O X O X
X O X O O X <--Your count begins here.
X O X ----O <-Here is the sell signal and the base for the "add"

The math:
If the box size is = to 1
15 x 3(three box reversal) X 1(box size) = 45
Add 45 to the bottom sell signal. Let's say it is at 20.
45+20 = 65. This is the price objective.

If the box size is = to 2
15 x 3(three box reversal) x 2(box size) = 90
Add 90 to the bottom sell signal. Let's say it is at 100
90+100 = 190

If the box size is = to .5
15 x 3(three box reversal) x .5(box size) = 22.5
Add 22.5 to the bottom sell signal. Let's say it is at 5
5+22.5 = 27.5

Hope that helps.

Jan I am
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