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Strategies & Market Trends : Point & Figure - Beginners (Real Green)

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To: Ms. X who wrote (45)12/28/1998 1:19:00 PM
From: Bwe  Read Replies (3) of 322
 
Jan,
As with the prior comments by Ben A. in response to Wizzie, the drawing in of an "unofficial" Bullish Support Line or a Bearish Resistance Line when one or the other is "officially" in charge of the chart, is a matter of the p&f methodology one chooses, not a generally accepted p&f axiom. As Eric put it in early December:

"On this stock you mentioned that the Bearish Resistance Line is in control. I agree but think this might be confusing to some for this reason: Dell is trading miles above its "Offical" Bullish Support Line, it's long term bullish, -- so some may wonder why we are discussing the Bearish Resistance Line? Especially since DWA always shows either an in charge "Offical" Bullish Support Line or Bearish Resistance Line at one time. They are never depicted on a chart as both being active. That is, when one ends, the other begins. Chartcraft on the other hand, will actually draw in an "Unoffical" Bullish Support Line or Bearish Resistance Line for visual purposes. Perhaps we should consider using "Offical" and "Unoffical" designations."

As for charting a stock without using Bullish Resistance Lines (brl), or Bearish Support Lines (bsl), I couldn't think of my p&f charts without 'em. I consider them essential and indispensable components of a point & figure chart. And, I honestly don't believe they complicate things much at all. After all, there are only 4 trend lines in p&f charting. Better to learn to master them all from the very start to allow the beginning chartist to get a long, intermediate, and short term picture of a stock.

Happy charting.

Bruce
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