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

To: Bwe who wrote (4484)	7/7/1998 4:21:00 PM
From: feewaybill	Respond to of 34811

Hi Bruce, Thanks for the Chartcraft Report. DELL is in a Bullish Shakeout Formation. I had to go into Toms PNF Charting for a refresher. Bullish Shakeout Formation This is one of my favorite patterns. We keep a strong eye out for these patterns because they have a high degree of reliability. It is called the Shakeout because the pattern easily deceives investors when the sell signal is given. for the pattern to be a true Shakeout formation, it must have the following six attributes: 1. The stock must be in a strong uptrend. 2. The stock should be trading above the Bullish Support line. 3. The stock must rise to a level where it forms two tops at the same price. 4. The subsequent reversal of the stock from these two tops must give a Double Bottom sell signal. 5. This sell signal must be the first in this uptrend. 6. The RS chart must be on a buy signal. The Shakeout begins by giving the Double Bottom sell signal. We never know what level the sell signal will carry the stock down to so our action point for entry into this stock is on the first three-box reversal back up into a column of X's. Once the stock reverses back into a column of X's, the position can be taken.,ect. pg50-51 I'll be watching this pattern and also the BullTrap pattern on FON...............Bruce(the other one)