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

To: Jack Chen who wrote (2396)	4/19/1998 2:55:00 PM
From: wizzards wine	Read Replies (1) \| Respond to of 34812

Thanks Jack, However I'm surprised that you do not take RS into account. Any particular reason. We find it to be a very powerful indicator of trend direction... Ie. we look for a stock that has just switched from a RS column of O's into X's as that is a short term indicator that the trend is about to change and it will be beating the average market. With the market over extended as it now is, we like to use every tool in our bag to help out. Just my thoughts Thanks Preston

To: Jack Chen who wrote (2396)	4/19/1998 6:30:00 PM
From: Bwe	Respond to of 34812

Jack.....I have to agree with Preston. RS is one of the most important tools a p&f chartist has at his/her disposal. Where the main trend of a stock is bullish, the stock has a bullish RS chart and is trading above it's bullish support line. Stocks that are not on RS buys are considered "trading" stocks and not good candidates for a long term investment. When a stock gives a RS buy it is expected to outperform the market for a long period of time. RS signals, on average, last a few YEARS so it is important to pay attention to this key indicator. In the Chartcraft data that I get weekly, stocks give "up" signals, not "buy" signals, when a stock gives a buy on it's p&f chart and the RS does not confirm. Conversly, when a stock in a column of O's moves below a previous column of O's and the RS is on a sell, the stock gives a "sell" signal. When the aforementioned happens and the stock has positive Rs it's called a "down" signal. RS is one of the most important aspects of p&f charting. I'd be happy to let you know the RS status of any stock you're researching.