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

To: OX who wrote (25637)	2/1/2002 11:00:44 AM
From: Atin	Read Replies (2) \| Respond to of 34810

Without testing this, POs are no different from just buying/selling the first reversal off a breakout/breakdown on a chart and one wouldn't need POs. That is my whole point - that POs are always in the same direction as the breakout/breakdown so they provide no additional information except a "future price". So the thing to test is how good they are at predicting this "future price". If they are worse than 50% then one might as well just use the breakout/breakdown as the guide. Predicing price also goes against my philosophy which basically goes something like "show me a method that predicts future price and I will show you a coin that will do as well". My own bias is that money management is the key behind making money in the markets, P&F gives you a direction - follow it and get the hell out if the market says you're wrong. A price objective that is "correct" gets you out too quickly since the prices could continue in the same direction if the chart is in a trend, and a price objective that is "wrong" will give you no more information than the original breakout/breakdown did. Overall it feels like a waste of time to test this. Maybe I should ask one of you guys who wants this to test it for me and I'll check your results <g> -Atin