Point and Figure Charting Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Point and Figure Charting

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Smooth Drive who wrote (19027)	4/24/1999 7:41:00 AM
From: Bwe	Read Replies (3) of 34808

Hi Eric, The Bull/Bear Trap message was another outstanding post. You're tops. For Diana and others with an interest, here are some ticker symbols for further study: Bear Traps: Omnipoint (OMPT): As Eric described it, a Bear Trap with a Buy signal. Norfolk Southern (NSC): An interesting example. A Bear Trap that turns up into X's, then reverses back into O's to give a sell signal. Doesn't drop another box after the confirming sell and goes on to give a Buy signal. If you took the strong Bear Trap signal that broke four bottoms, you would've had to hold your breath on the confirming sell signal. A double fake out. The patience to wait for the Buy signal as confirmation after the Quad Bottom Failure in this case must be why Aby differentiated the patterns. Probably less agita, however, the RS status and your fundamental research when thrown into the mix can also add to the effectiveness of your decision where in the pattern's development to buy the stock. Chemfab (CFA) - An example of a Quadruple bottom break and subsequent reversal up after one box. I also view this as a more powerful degree of Bear Trap as the confidence that the stock is going to go lower is greater with the Quad bottom break. The fake out is that much deceptive. Bull Traps: Anacomp (ANCO): A High Pole in January followed by a classic Bull Trap. Mellon Bank (MEL): A cool Spread Bull Trap. See if you can find it? Ken Fisher, in his Forbes column recently wrote: "The Great Humiliator has only one goal: to humiliate as many people as possible for as many dollars as possible over as long a time as possible" Bull/Bear Traps give you a glimpse of this stock market principle at work. The p&f chart allows you to see the deception unfold before your eyes and take action. Take care, Bruce

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next