Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: bandita who wrote (25008)	9/15/2000 6:33:36 PM
From: Atin	Respond to of 34822

The price objectives are calculated using something called the vertical count. Basically a new count seems to happen when you get a double bottom breakdown. JDSU had a double bottom breakdown recently and that (incomplete) count goes to 80. It goes something like this: 11 boxes in the last column of Os (the one that broke down) 2 points per box 3 box reversal. 11 boxes multiplied by 2 points per box multiplied by 2/3 of the reversal amount (3) gives you 44 (112(2/3*3)). The column started at 124. 124-44 = 80. If the column had been Xs you would have gone: 11 boxes multiplied by 2 points per box multiplied by the reversal amount (not 2/3 of the reversal amount). There are other ways to calculate vertical counts -- all are trying to extrapolate the current move. This is totally not guaranteed, just like everything else in the market. I like to use these numbers as "feel good" numbers. If they happen to coincide with the rest of my outlook, I smile, if they don't, I ignore them e.g. CSCO. I have a hard time believing we'll see 46 on CSCO. But what do I know . . . I just write the code <g> -Atin xocharts.com (free point and figure charts)