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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (3059)	2/16/2000 6:00:00 PM
From: Jorj X Mckie	Respond to of 8096

Perhaps I generalized a bit<g> But buy signals can be negated too. JDSU was on a buy signal when it hit its new high and then reversed down. Many practitioners of P&F will wait for a second signal before entering a position and then there are other types of TA that have different signals. With the main P&F market indicators in negativity territory, I tend to pay attention to all negative signs. Right now, JDSU looks toppy to me, but it could break out and change the view completely. I should point out that P&F charts are weird in that they do not show time as a component of the chart, just stock movements. Xs mean up, Os mean down. When you have a column of Xs that goes higher than the previous column, it has broken through a resistance point and given a buy signal. If a column of Os goes lower than the previous, it is a sell signal. This is the chart where the sell signal was negated. 248 \| X 248 244 \| X O 244 240 --------------------------------------+-------X O -------------------------240 236 \| X O 236 232 \| X O X 232 228 \| X O X O 228 224 \| X O X O 224 220 --------------------------------------+-------X O X O X -------------------220 216 \| X O X O X O X 216 212 \| X O O X O X X 212 208 \| X X O X O X O X 208 204 \| X O X O X O X O X 204 200 --------------------------------------+---X O X ----O X O X O X -----------200 198 \| X O X O X O O X 198 196 \| X O X O X O 196 194 \| X O X O X 194 192 \| X O X O X 192 190 --------------------------------------+---X O X ----O X -------------------190 188 X X O X O 2 188 186 X O X O X O X 186 184 X O X O X O X 184 182 X O X O X O Med182 180 --------------------------------------X O X O -----------------------------180 178 X O X 178 176 X X O X 176 174 X O X O X 174 172 X O X O X 172 170 ----------------------------------X O X O X -------------------------------170 168 X O 1 O X 168 166 X O X O X 166 164 X O X O X 164 162 \| 162 160 ---------------------------------- 9 \| -------------------------------160 158 X O X O X 158 This is the 5pt chart for JDSU that shows the triangle forming. 250 ---------------------------------------------------------------------------250 245 X 245 240 X O 240 235 X O 235 230 X O X 230 225 ------------------------------X O X O -------------------------------------225 220 X O X O X 220 215 \| \| X O X O X O 215 210 \| \| X X O O X O 210 205 \| \| X O X O X O 205 200 --------+-----------+-----X O X ----O 2 O ---------------------------------200 195 \| \| X O X O X 195 190 \| \| X O X O X 190 185 \| \| X X O X O 185 180 \| \| X O X O Med180 175 --------+---------X +-X O X -----------------------------------------------175 170 \| X O 1 O X 170 165 \| X O X O X 165 160 \| X O X O X 160 155 \| X O O X 155 150 --------+---------X +---O -------------------------------------------------150 145 \| X \| 145 140 \| X \| 140 135 \| X X \| 135 130 \| X O C X \| 130 125 --------+-X O X O X +------------------------------------------------------125 120 \| X O X O X \| 120 115 \| X O O X \| 115 110 \| X O X \| 110 105 \| X O \| 105 100 --------+-X --------+------------------------------------------------------100 95 \| X \| Bot95 90 \| B \| 90 85 \| X \| 85 I will say that there is no substitute for being intimately familiar with the stock movements. And "if it ain't broke, don't fix it" is always a good rule. JXM