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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: papi riqui who wrote (22457)	7/19/1999 1:18:00 PM
From: James C. Mc Gowan	Respond to of 34809

Papi and Tammy: ditto question on CAMP; also please elucidate re: QCOM where Friday it hits a new high, gives a Technical Break Out-Buy signal and simultaneously gives a Momentum crossed to Negative signal. How do we use this momentum info relative to the strong movement of these stocks, and otherwise strong P+F signals? Regards James

To: papi riqui who wrote (22457)	7/20/1999 6:11:00 PM
From: Tammy DeRosier	Read Replies (3) \| Respond to of 34809

Weekly momentum is a short term timing tool that we use to help time the purchase of an equity. The basic calculation is a one versus five week moving average that is exponentially weighted and smoothed. We can not give out the exact calculation. When the one week crosses above the five week moving the weekly momentum is said to be positive. When the one week crosses below the five week, the momentum is said to be negative. Let's say for instance that you were thinking about buying XYZ Corp. The stock was trading above the bullish support line and the relative strength chart was positive and in X's and the sector was good -- in other words, all of the long term indicators on the stock were positive. However, the weekly momentum had turned negative and the stock was at the top of the ten week trading band. That would suggest we stick our order to buy the stock on a pullback. On the other hand, if the weekly momentum was just flipping to positive and the stock was still near the middle of the ten week trading band, we would go ahead and buy the stock at the market. I hope this explanation helped. Tammy