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

To: P. Ramamoorthy who wrote (735)	2/16/1998 11:19:00 PM
From: Ben Antanaitis	Read Replies (1) \| Respond to of 34812

Ram, Always look at the daily high and the daily low price to determine what needs to be done. Ignore the daily open and the daily close. If the daily high price has gone up enough to add an 'X' to a column of 'X's do it based on the daily high. If you are in a column of 'O's and the daily low allows you to add an 'O', do it. If the daily high or daily low has moved enough to reverse the column, do it. Only work with the daily high and daily low price, if you are following the Traditional P&F scaling method that Tom teaches. The RS calculation is (stock$/Dow$)*1000 Ben A.

To: P. Ramamoorthy who wrote (735)	2/17/1998 12:18:00 AM
From: Ms. X	Read Replies (3) \| Respond to of 34812

Hi Ram, I saw Ben gave you an answer to the question. I'll add some graphics. Here we are in a column of X's at 24. Since we are in a column of X's, the first question we ask is " did the stock move to 25? " 25 ? 24 X 23 X X 22 X O X 21 X O X 20 X O X If yes, we add another X. That is all you do for the day no matter what the low was. Next day we ask the same question "did the stock trade at 26?" Lets say the high was 25.875 and the low was 24. The answer to our first question is no. Now we can ask "did the stock make a three point reversal and trade at 22?" The answer is no so there is no movement on the stock for the day. 26 ? 25 X 24 X 23 X X 22 X O X ? 21 X O X 20 X O X The next day the stock trades at a high of 25 and a low of 21. We know we can't add another X at 26 but can we reverse to 22, yes. 26 25 X 24 X O 23 X X O 22 X O X O 21 X O X O 20 X O X Now that it is in a column of O's your first question is whether the stock traded below the current bottom O. Just do the reverse of the X's up top. I hope this helps. I'll pass the RS question to Dorsey. Jan