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

To: wizzards wine who wrote (4461)	7/6/1998 4:37:00 PM
From: Mr. BSL	Read Replies (1) \| Respond to of 34824

Good work Preston. Using Zachs or Value Line gives a great bang for the FA buck. The P&F gives us the entry and exit points. The FA keeps us from getting pounded before the P&F sell signal gets us out. Last year I started a study of stocks that got pounded into the ground. Using 25% in one week as the criteria, I found that Value Line 1 & 2 stocks tended to give a P&F sell signal in time to get out before the big damage was done. I also found that stocks rated in the top 25% of its Zachs group gave similar results. PMTC is an excellent example. It was a Value Line 1 stock that gave a big P&F sell signal before the real damage happened. For the P&F "touch" types, PMTC touched the BSL at 28 on 6/29. 28 exceeded the previous column of O's and was the signal to get out. For the P&F "penetration" types, PMTC penetrated down to 27 on 6/30. In either case, your stop loss would have taken you out in plenty of time. Over & over again, I found that the high FA stocks gave P&F signals in plenty of time. The low FA rated stocks tended to scream through the P&F sell point. I know the point of your post is that P&F gives superior results to FA only. Your absolutely right of course. I just wanted to use this opportunity to point out how good FA, in conjunction with P&F, really minimizes the probability of a stock gapping way down below your stop. How about those internet stocks? Time to ban them from contests? only kidding. Take care my friend, duke60