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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: Ms. X who wrote (2784)	12/10/1999 11:56:00 AM
From: Cape Blanco	Read Replies (1) \| Respond to of 9427

I asked to have a stock put in the data base and it only took one day. Pretty cool. I signed up for 3 months and received a signed copy from Tom Dorsey of his epic tome. If anyone is thinking of signing up that is the way to go if the offer is still valid. How are you Sis?

To: Ms. X who wrote (2784)	12/10/1999 12:05:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 9427

DWA Reference Manual continued... Chart Patterns Chart patterns are the backbone of point and figure charting. The formations accurately record the battle between supply and demand. A study done by Professor Earl Davis of Purdue University concerns the profitability associated with different chart patterns. The tables are reproduced from A.W. Cohen's book, Three Point Reversal Method of Point & Figure Technical Analysis. As you will see, the probabilities are in your favor if you wait for a chart pattern to form before making a stock commitment. Keep in mind that past performance is not a guarentee of future results. Bull Market Results % OF TIME AVERAGE AVERAGE FORMATION PROFITABLE GAIN TIME OF TRADE DOUBLE TOP 80.3 % 38.7 % 11.5 MONTHS TRIPLE TOP 87.9 28.7 6.8 MONTHS SPREAD TRIPLE TOP 85.7 22.9 7.7 MONTHS BULLISH TRIANGLE 71.4 30.9 5.4 MONTHS BULLISH SIGNAL 80.4 26.5 8.6 MONTHS BEARISH SIGNAL REVERSED 92.0 23.2 2.5 MONTHS COMBINATIONS 79.5 36.0 8.0 MONTHS Bear Market Results % OF TIME AVERAGE AVERAGE FORMATION PROFITABLE GAIN TIME OF TRADE DOUBLE BOTTOM 82.1 % 22.7 % 4.7 MONTHS TRIPLE BOTTOM 93.5 23.0 3.4 MONTHS SPREAD TRIPLE BOTTOM 86.5 24.9 4.6 MONTHS BEARISH TRIANGLE 87.5 33.3 2.5 MONTHS BEARISH SIGNAL 88.6 21.9 4.9 MONTHS COMBINATIONS 83.3 22.9 3.4 MONTHS Chart Patterns Double Top Triple Top Bullish Catapult An X (up) column exceeds An X column exceeds two Combination of triple top previous X (up) column. previous columns or buy signal followed by the levels of resistance. double top buy signal. 45 45 X 45 X X X X 40 40 X 40 X X X X X X X B X X X X 35 B 35 B 35 X O X X X X X X X X X O X X O X X O X O X X O X O X O X O X X O X O X X O X O X X O X O O X O O 30 30 30 Shakeout Bullish Triangle Bearish Signal Reversal Stock makes two tops, Series of lower tops Series of lower tops and then breaks a double and higher bottoms. bottoms. Quick reversal bottom. This rids the Chart breaks one way up and stock breaks out. stock of weak holders. or other. Take action No accumulation occurs. Can buy on 3 box rever- on the breakout. 5 7 columns needed. sal up. Shakeout is columns needed. completed when the triple top is broken. 45 45 45 X X X X X X X X X X X X X 40 X 40 X 40 X O X X X X X X O X X X O X O X X X O X O B X O X O X X O B O X O X X X O X O B X O X X O O X O X 35 X O O X 35 X O X O X 35 O X O X X O X X O X O X O O X X O X O X O O X X X O X O X X X O O 30 X 30 X 30 Double Bottom Triple Bottom Bearish Catapult An O (down) column An O column exceeds Combination of the triple exceeds a previous two previous columns, bottom sell signal followed O (down) column The or levels of support. by double bottom. simplest of all sell signals. 45 45 45 X X X X 40 X 40 O X O X O 40 O X O X O O X O O X O X O O X O X O X O X O O O O O O O X O O O S O X O S O O O 35 O 35 O 35 S O O O O O 30 30 30 Bearish Triangle Bullish Signal Reversal Series of lower tops Series of higher tops and and higher bottoms. bottoms. Quick reversal Chart breaks one way down and stock breaks down. or other. Take action No accumulation occurs. on the breakout. 5 7 columns needed. columns needed. 45 45 O X O X X O 40 O X O 40 X X O O X O X X O X O O X O X O X X O X O O X O X O X O X O X O O X O O X O X O O 35 O X S 35 X X O X S O O X O X O O O X O X O O X O O O X O 30 30

To: Ms. X who wrote (2784)	12/10/1999 12:11:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 9427

DWA Reference Manual continued... Trendlines Using trendlines helps us to make buy/sell decisions. When a trendline is broken, it signals a change in the posture of the stock. The two major trendlines: the bullish support line, and the bearish resistance line, can be used to identify areas of support and resistance in point and figure charts. Bullish Support Line: When the stock has formed an apparent bottom, a bullish support line can be drawn. It should start in the box directly below the lowest O in the lowest column and move upward at a 45 degree angle. Bearish Resistance Line: This is the reciprocal of the bullish support line. A bearish resistance line is to be drawn above the highest X in the highest column downward at a 45 degree angle. Relative Strength Relative strength readings are incredibly important in stock selection in all kinds of markets. The relative strength calculation is simply done by dividing the price of the stock by the price of the Dow or any index you choose and then multiplying by 1000. This number can then be plotted on a point and figure chart. RS chart buy signals are given when a column of X's exceeds a previous column of X's. Sell signals are given when a column of O's exceeds a previous column of O's. Relative strength signals generally last about two years and tell the overall trend of a stock. Positive relative strength suggests the stock will outperform the market while negative relative strength suggests the stock will underperform the market. It's also important to watch for reversals for short term guidance. Say for instance XYZ was at $80 and the Dow was at 2,500. If we divided $80 by 2500 and moved the decimal we would get 32. This number 32 can be plotted just as if it was an $32 stock. Let's say the following week the stock falls to $72 and the Dow dropped to 2000. We now divide $72 by 2000 and get 36. In this case the stock dropped, the Dow dropped but the relative strength chart went up. This tells us that the stock is doing better than the Dow and it is possible that the only reason it is down is that the overall market is down. This stock could be one of the first to snap back when the overall market is ready. Remember according to a University of Chicago Study 75-80% of the risk in a stock is market risk, 20-25% is stock specific risk. Momentum/Trading Bands At Dorsey, Wright & Associates we use measures of momentum and overbought/oversold readings to aid in our interpretation of a stock. The measures are computed by our database, and can be accessed by clients. Momentum: Following weekly momentum is very helpful when timing trades. A positive weekly momentum suggests higher prices and negative momentum suggests lower prices. Weekly momentum is a shorter term timing tool as changes to positive or negative weekly momentum last seven weeks on average. We can calculate the number at which momentum will change to positive or negative. If the price of a stock is below the price that stock needs to hit in order to change its momentum, then the change number is where the momentum will turn positive. If the price of the stock is above the change number then this is where the weekly momentum will turn negative. See next page for a sample momentum table. XYZ Corp. Weekly Momentum Table Date Bullish Bearish Last Cross =================================================== 04/21/97 0.00000 -0.05268 19.500 22.987 04/14/97 0.00000 -0.03488 20.750 23.029 04/07/97 0.00000 -0.02531 20.250 21.867 03/31/97 0.00000 -0.00998 21.375 22.019 03/24/97 0.00000 -0.01340 21.875 22.755 03/17/97 0.00000 -0.04961 21.875 25.336 03/10/97 0.00000 -0.06116 21.875 26.131 03/03/97 0.00000 -0.08037 21.000 26.567 02/24/97 0.00000 -0.07396 21.000 25.983 02/17/97 0.00000 -0.01555 20.625 21.567--- Weekly momentum 02/10/97 0.06603 0.00000 22.500 18.777 turns negative here 02/03/97 0.09317 0.00000 22.375 17.270 as the numbers are 01/27/97 0.12540 0.00000 22.500 15.847 under the bearish 01/20/97 0.12228 0.00000 23.000 16.508 column 01/13/97 0.10112 0.00000 20.687 15.564 01/06/97 0.09289 0.00000 19.000 14.462 12/30/96 0.11479 0.00000 18.625 13.247 12/23/96 0.21601 0.00000 17.750 9.013 12/16/96 0.25133 0.00000 18.375 8.346 12/09/96 0.23051 0.00000 17.625 8.265 12/02/96 0.26702 0.00000 17.250 6.915 11/25/96 0.21550 0.00000 18.000 9.102 11/18/96 0.07435 0.00000 14.750 11.308 11/11/96 0.01208 0.00000 14.375 13.746 --- As long as the 11/04/96 0.00000 -0.04797 15.500 18.400 numbers are under 10/28/96 0.00000 -0.17586 13.750 27.880 the bullish column 10/21/96 0.00000 -0.20112 14.000 31.266 we consider the 10/14/96 0.00000 -0.18489 15.500 30.971 weekly momentum 10/07/96 0.00000 -0.18102 16.750 32.507 positive. We watch 09/30/96 0.00000 -0.16417 16.500 31.472 for the first week 09/23/96 0.00000 -0.06613 26.000 32.195 the data flips from 09/16/96 0.00000 -0.04874 29.375 34.006 one column to the 09/09/96 0.00000 -0.07187 27.500 34.358 other to signal a 09/02/96 0.00000 -0.04422 28.250 32.329 change in momentum 08/26/96 0.00000 -0.00517 29.750 30.211 Trading Bands: This is the basic bell curve, giving a picture of whether a stock is overbought or oversold based on a 10 week moving average. 100% overbought is three standard deviations above normal. 100% oversold is three standard deviations below normal. If the stock is 100% overbought, it suggests the stock will correct to normal on the curve. If the stock is 100% oversold, it suggests the stock will bounce to normal. The disadvantage to trading bands is the tails can go out to infinity. * * * * * * \| * * \| * * \| * * \| * * \| * * \| * 100% Oversold Normal 100% Overbought * * * * \| * * * * ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

To: Ms. X who wrote (2784)	12/20/1999 2:47:00 PM
From: Ms. X	Read Replies (3) \| Respond to of 9427

Web Site News on DWA Located under News and Communications. Here is what you will find under Web site news. Anything new or upcoming at DWA. Web Site News NEW ON THE NET! Charts Plus and Professional Users We have added an Auto Comments link. For Charts Plus users the link is on the left side of the chart. For Professional users the link to the auto comment is in the current Comments link. This Auto Comment is generated using information in our databases. It does not provide a recommendation. Rather, it gathers information about a stock and puts it into an easily read paragraph. Click the link and let us know what you think. All Users - New Commodity Page Format We have changed the format of the commodity page to hopefully make it more useful. We have seperated the commodities into groups such as Softs, Industrials, Financial, Energy, Livestock, Precious Metals, Grains, Currency and Index. As well we have included additional information in the table about the individual chart such as trend, current pattern, current column and weekly momentum data. Check it out. Professional users - COMPARING PORTFOLIOS - ADDITIONAL ACTIVITY NOTIFICATIONS We have added a new feature to the portfolio page! It gives the user the ability to compare 2,3,4,5 or however many portfolios to determine the common tickers between the portfolios. If, for example, you have a portfolio containing the Value Line 1 stocks for timeliness and the S&P 5 Stars you could select the compare feature and it would pull out all of the stocks that are in both lists. If you were comparing three lists it would pull out the stocks that are in all three lists. To use this feature simply go to your portfolio lists and look to the far right of All Portfolios for a button that says Compare. Click it and then click the box to the left of the portfolio names that you want to compare. When you are done selecting the portfolios you wish to compare, click the Compare button at the bottom of the page. The system will return to you a list of the matches with a link to the chart. As well, you will have the ability at the bottom of the page to save the results as a new portfolio! Also coming next week , we will include in the Portfolio Activity Report the stocks that are in the Stocks to Watch report. This criteria for this report was described in detail in Wednesday's (10/28/98) report. All Users - IMPROVEMENTS IN RELATIVE STRENGTH AREA How is your stock performing compared to the Dow. To help you determine this we have added another feature to the net. When you click on a RS chart the word Relative Strength at the top of that page will be underlined indicating an active link. If you click on this link it will return a table providing the daily calculation for the relative strength. If this calculation is increasing day to day then the stock is outperforming relative to the Dow. This feature will also be useful when looking to see if a RS chart is close to reversing. Keep in mind though the RS charts are updated on Tuesdays only. In the table that day (Tuesday's) will be highlighted. All Users - There is a new feature we added to the net a few weeks ago that was mentioned in this report. We will review it again today. This new page provides links to other useful financial sites and allows you to create your own bookmarks to sites that YOU use. The neat thing here is that since you are running from within the DWA system, you maintain easy access to charts and other features of our site. Especially with the volatility in the foreign markets, it is important to stay current with events overseas the previous night. A great source to bring you up to date is provided as a link on the Resource Page. It's under the Worldwide link on the left hand side of the page. Click that and then you will see Worldwide Financial News. That's a great source for what's going on overseas. Also, you might want to check out HongKong Standard, it's site is hongkongstandard.com. Consider adding this one to your own bookmarks. How do I do that? Click on the My Bookmarks link in the bottom of the left side screen and then follow the instructions. Another feature we have put into place is the ability for you to set your starting page. The system is currently set up so that when you log in you go to the Main Page. We have already created a link to take you past the log in process and now we are giving you the ability to tell the system where in our system you want to start. You can now go directly to the Resource Page, The Daily Equity Report, Your Portfolios, The Reports Page, Mutual Fund Central, or you can leave it just the way it is. To change your start page you need to edit your preferences. The default page is the Main Page. Look at the top right of the Main Page and click "Edit Preferences." This will take you to a screen that gives you the ability to change how your page is set up. Scroll down this page until you see a box just to the left of Starting Page. Click on the arrow to see your choices of pages to set as your starting page. Whatever you choose, keep in mind that you will be just one click away from the Main Page all of the same pages and reports on the site. All Users - INTERNET TIP - DON'T WANT TO LOGIN EVERY TIME? See the link at the bottom of the main page. It will provide a direct link to the syustemn so that you do not have to log in each time you want to use the system. All Users - NEW FORMAT FOR MARKET & SECTOR INDICES Remember the old Index List page? Erase that memory. We have enhanced the page to provide easier access to specific index categories. When you access this page you now get five categories of index charts. The default category is Market, which contains indices like the Dow Jones and S&P. From that page you have the ability to select Sector, Foreign, Commodity and Other. What is in the categories should be pretty clear by the name with the exception of Other. We are still creating this category and plan on having charts like the Value Line minus the S&P, and the CYC minus the CMR. These pages also provide technical information on each index. This information includes the trend of the chart and date it has been in effect, P&F signal, Relative Strength versus the SPX signal and column, number of components and bullish percent of those components if possible. Check it out!!