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

To: Giordano Bruno who wrote (4359)	7/2/1998 11:54:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34811

Hi Jim, I'm trying to think of all the examples I could set forth to answer your question. I'll start with PMCS. It right now has an excellent pullback. It has not broken any double bottoms. Now would be a good entry in the stock. It has given two buy signals and higher bottoms. We would be concerned if it broke two double bottoms or the bullish support line. A three box is what is needed for a reversal. No exceptions to that rule but it doesn't mean that you can't have more, you just can't have less. Having more than three boxes is not a negative thing unless it surpasses other columns of O's. This creates sell signals. One sell signal in an uptrend is usually false, two sell signals and you have a warning. A column of O's whether only three or more, violating the bullish support line is a sell signal. As I put up charts you will see how I mark buy and sell signals. Remember in P&F the term used is buy and sell, this is not always meant as a literal translation. A sell signal is O's surpassing a previous column of O's, a buy signal is a column of X's surpassing a previous column of X's. We look for pullbacks to come to areas of previous resistance or to support (like the bullish support line). If the chart is on a high pole, we like to see a retracement of 50% for an entry point. That would be 10 boxes without a sell signal and still considered a good pullback. There are many different ways to look at these charts. My best advice is to keep pulling up different charts and study them. See how the patterns work and what the pullbacke look like. It will all come together. Hope this helped, Jan I am