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

To: papi riqui who wrote (2963)	5/12/1998 11:08:00 AM
From: Ms. X	Respond to of 34809

Hi Papi, I'll have to look at the posts and the chart to see what is what. Remember not everything even P&F is right 100% of the time but rather stacks things in your favor. Let me take a look to see what is going on. Back as soon as I can.

To: papi riqui who wrote (2963)	5/12/1998 12:44:00 PM
From: lobster	Read Replies (1) \| Respond to of 34809

PR, My first recommendation is to learn PnF by reading Tom's book and subscribing to DWA's service. I have reviewed your posts, the charts, and the responses. On MYL, the stock was extended and the risk vs. reward was not in your favor. As far as the stock being in a downtrend, it was not. The momentum and relative strength were negative. The RS has since reversed. The right call was to avoid. Waiting to buy a stock a positive RS alone is wrong. When evaluating a stock to buy using PnF, one should write down all the reasons to buy and all the reasons not to buy stock. If the reasons to buy the stock are more dominant than the reasons not to, then buy. On GIFI, once again the right call was made, the stock didn't give a buy signal until sometime in April when it broke a double top at 20. Depending on all of the other factors, 20 might have been a good buy for a trader. In both of the above you might have missed an opportunity. So what, that is all that was missed another one will be along shortly. If your technical indicators were telling you to buy, why take action based on PnF a form of TA that you do not have a grasp on as of yet? Once again, if you read the book and subscribe to DWA's service, you will be on your way to a better understanding of PnF. However, if you have a great understanding of your TA go with it and do not confuse yourself with PnF. If you do not have a firm grasp of your TA then I encourage you to learn PnF as it is easier to learn than most. At a seminar I attended, Tom said that most forms of TA work well when learned properly. He likes PnF b/c it is the easiest form to learn. I agree with you to an extent that PnF is confirming. It confirms whether supply or demand is in control. I disagree that it is not an effective tool for short term trading. However, you must learn to read the charts and the other indicators b/f you can trade the trading ranges that you referred to in your last post. Later, Lobster

To: papi riqui who wrote (2963)	5/13/1998 8:09:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34809

Hi Papi, Didn't forget about you. Your question is very good and it sets for some good examples. Thanks by the way for adding the post numbers, that helped tremendously. Regarding GIFI: At the time we first discussed GIFI the RS was in a column of O's and the momentums were negative. It was also trading below its trend line. I had made the comment "Gifi needs to break that brl and flip its momentum positive." It did just that on 4/15 when it broke a double top and the brl. See second chart. (First chart from March 31st) 25 \| ------------------------------- 24 * X * <----\| 23 \| * X O X * Lower tops 22 \| * * X X O 3 O * \| 21 \| X * X O X O X O X * <--\|Keeps bouncing off brl. 20 O ----X O * --X O X O X O X O --- 19.5 O X O * X 2 O X O X O Three consecutive sell signals 19.0 1 ----X O X --X ----O X O X O --- 18.5 O X X O X O X O X O X 18.0 O X O X O X O X --* O --O X ----- 17.5 O X O X O O X * O 17.0 O --O X ----O * ----------------- <--Stop point. Chart as of today. 28 27 Top 26 5 25 --------------------------------X ------------ 24 X * X 23 * X O X * X 22 * * X X O 3 O * X 21 X * X O X O X O X * X Med 20 ----X O * --X O X O X O X O * --X <--Move on 4/15 that broke a double top and the brl------------ 19.5 X O * X 2 O X O X O 4 * X This was your OK sign. 19.0---X O X --X ----O X O X O X O X ------------ 18.5 X O X O X O X O X O X O X 18.0 X O X O X --* O --O X O --O ---<--Held support 17.5 X O O X * O 17.0- X ----O * -------------------------------- Breaking the brl is a bullish sign. I would have still said to be careful and that it might be a play for traders since the RS is still negative. We look for buy signals such as that double top to indicate demand is coming in. When you first asked, it had been giving consistent sell signals. It turned around, gave a buy signal and then surged. You have to keep up with the charts to see what they tell you. Do you see? Next MYL but I see I didn't include a chart with it, shoot. Jan I am

To: papi riqui who wrote (2963)	5/13/1998 8:22:00 PM
From: Ms. X	Respond to of 34809

Papi, Regarding MYL. It hadn't broken its trend line, which was good but the RS was negative and the momentums worried me. Others did look better. Since then the RS flipped to positive (May) but it is right at resistance. I would still only suggest a pullback. As to whether it P&F works for short term trades, the signal on 4/15 for GIFI was a nice one. Gave you room after that. Traders, I understand, who follow P&F look for a double or triple top buy and break of the brl for a quickie. Tom has made a comment on several occasions that is very important to remember: "It is better to loose opportunity than to loose money". There are 11,000 stocks out there. Most probably if you had a chart that looked like GIFI did and you played it when you first asked me, you would have been sorry. GIFI bucked the trend. Take care, Jan I am