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

To: Bwe who wrote (25630)	1/31/2002 10:48:48 PM
From: Davy Crockett	Respond to of 34809

Well said & I agree... Regards, Peter

To: Bwe who wrote (25630)	2/1/2002 7:11:10 AM
From: Atin	Read Replies (3) \| Respond to of 34809

I do put price objectives on my QPnf program chart and had it on my XOCharts.com site and you wouldn't believe the kinds of questions I get about those. It is scary and I decided not to go anywhere near even the idea of predicting future prices. It seems that putting a number down on a chart is predicting a future price vs using a chart pattern to predict a direction. I am perfectly fine with predicting future direction because people are more willing to get out when it looks like the prediction isn't going the way they expect. But a price seems to give many people the hope that regardless of whether the price trend changed, the price objective will make it back because the chart "said so". Again, I am not going to put Price Objectives on my P&F charts. People who can calculate these themselves hopefully also realize after seeing how easy the calculation is that "user better be wary". For the others I'd rather not lead them to hang on to a stock just because our "chart said so". And I would be very interested to see how well these price objectives do under testing. P&F is a channel breakout trend following method. The price objectives are just a channel breakout extended to a price based on the extent of the first moves out of the channel. For trending markets they're assuming that prices will move with a certain velocity based on that first move. Why this assumption is valid is beyond me. And for trading range markets the price objective will be as bad at predicting the price as the chart patterns are. I would be curious to see studies on this but don't have the time to do them myself because I have my own theory about them and so they feel like a waste of my time. -Atin