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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (21748)	3/6/2000 10:44:00 PM
From: Patrick Slevin	Read Replies (2) \| Respond to of 63513

Horizontal Counts have a direct relationship to Channels which are found in various forms of TA. Andrew's Pitchfork is one, for example. Fairly basic stuff in Channels, it's done by "Counting" the number of times the Price touches the Top then bottom of a range. For Example if a Stock traded between 35 and 40, rising up from 34 then hitting 40 and coming back, bouncing off 35 and going to 40 then your count is 2. Your Range is 5 points, and if the stock Breaks 40 your first target is The Low End of the Range (35) Plus the "Count", in this Case (2) multiplied by the Range itself (40 minus 35=5). So (25)+35, and your First Target is 45. I've tried it daytrading now and then.....works quite often if you do it correctly. Your Second Target is the Upper end of the Range plus the Count times the Range. So (25)+40 in this case and the Second Target is then 50. Second Targets don't have the same success rate as the First Target but the essence of the Channel Method is to provide the Trader with a target rather than just using pure gut feel. This is obviously easily translated into PnF because the "Range" or Channel becomes the width of the columns, the number of "bounces" between 35 and 40. Vertical Counts (in "normal" TA) were more complex and I do not recall them readily; I'm quite sure it's another type of count that is easily transferable from one method to the other. I know some prefer the one over the other, I prefer the Channel or Horizontal Count. I see OJ is quite angry. I'm happy I do not get around much, I never see him like that on the other few threads I read.