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

To: Dennis J. who wrote (2405)	4/20/1998 12:30:00 AM
From: Jack Chen	Read Replies (1) \| Respond to of 34812

Hello Dennis: I would say I buy/sell a lot with P&F, I also have a portfolio of stocks which I hold for long term, in long term I meant I do not intend to sell, yet, when I buy/sell, I also try to limit my target to the stuff that I am willing to hold out to long term just in case I entered the position wrong. Other than P&F, I read Better Investing magazine, BI is the magazine cater to the buy and hold crowd, I strongly recommend people here check out the BI magazine. I think the principle of P&F is to simplify the stock charting theory, I belive the original author intended just to show X's and O's, I found just by checking X's and O's are plenty good enough. I like thing simple and to the point:-)

To: Dennis J. who wrote (2405)	4/20/1998 9:03:00 AM
From: Ben Antanaitis	Respond to of 34812

Dennis, No need to feel like you are cheating! :-) It is just the fact that it takes a much larger percentage change in stock price to get reversals and 'signals' in certain price ranges if you use the 'Chartcraft/Traditional/DWA' box value scaling. See: Message 4067951 In that posting I give two links showing the percentage that the price of a stock has to change versus stock price to get a 3-box column reversal if you are using 'Chartcraft/Traditional/DWA' scaling. How can you avoid the 'dis-continuous scaling' penalty? You have hit upon 'cheating' which is using a gut feel. Well, you can use 'conventional' Point and Figure techniques if you were to use logarithmic scaling for box values, a feature available in EZ-PnF. You can set the box value difference to be something like 2% or 1.5% and know that every box is exactly that percent different from the one above and below it. This gives you extra percentage points 'in' or 'out' of a stock, on confirmed P&F patterns, while the traditionalists are waiting to pay the 'scale penalty'. EZ-PnF is available to evaluate, as a shareware version, at: pipeline.com Oh, and by 'pressing' an option button in EZ-PnF, the chart is generated with 'Chartcraft/Traditional/DWA' scaling so you see what the rest of the analyst's are seeing. I'll be writing about this and other P&F related observations on the EZ-PnF SI thread, right after the annual in-law visit completes in about a week or so. Till then, just small visits to the threads. Ben A.