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

To: Atin who wrote (22730)	7/29/1999 10:48:00 AM
From: Ben Antanaitis	Read Replies (2) \| Respond to of 34811

Atin, RE: I don't know whether to be looking at the next day's low or high before I draw my first X or O. Actually, you have to look at both the subsequent daily highs and the daily lows until one of them finally reaches a point where you can plot either three X's or three O's to begin your first column. For an arbitrary stock, not an IPO, just write down the adjusted high and low price on the day you wish to start the process. By adjusted, I mean you must do the proper 'rounding/scaling' to place the high in an imaginary column of X's and the low in an imaginary column of O's. EG. if the starting day's high were 103, then record 102 as the high price, and if the starting day's low were 96.5 then record 97 as the low price. Begin looking at the subsequent daily highs and daily lows. Compare the starting date's adjusted high with the following daily lows (because if the stock were in a column of X's, you might have a point where the column could reverse into O's) AND compare the starting date's adjusted low with the following daily highs (because if the stock were in a column of O's, you might be at a point where the column could reverse into X's). Track the daily prices until one of the comparisons yields a column for you. With IPO's, I select the initial opening price as the first price. Typically during the first day, a column of X's is created. And just as typically, a column of O's gets created the second day. IF this is not the case, just use the opening day's high and low price as described above and compare it to the following day's high and low until a column forms. Ben A. ez-pnf.com