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

To: SpecialK who wrote (2817)	12/10/1999 2:04:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 9427

The chart for CMTO was in a column of X's on the day that the range for the stock was a high of 28+ and a low of 19. Since it was in X's we look first to see if it can add another X before it can add a column of O's. The column of X's the day close prior was at 27. So, the next day when it traded to 28.75 it added another X. You cannot add two columns per day. So the move to 19 was not recorded. The stock clearly had demand coming in. There was enough buying interest to move the stock up one more box. Should it not have traded to 28 on that day it would have showed the reversal into O's down to 19. The day after that it continued moving up to 30, two more boxes above the close of 28 which is why the low of that day of 23 was not recorded. Now, if today it does't move to 31 and it moves to 27 or lower, we will have a reversal on the chart. See the post I did today in the DWA review. The one on basic chart patterns. It describes the three box reversal and when to add an X or an O. Hope this made sense.