Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Judy who wrote (4660)	7/12/1998 11:09:00 AM
From: Ms. X	Read Replies (1) \| Respond to of 34811

Hi Judy, P&F isn't really after the fact but it does need data to move on. With ASND, Tom had recommended a buy on it when it broke the brl at 36. Yes, that is off the bottom but it indicated demand was coming in. Looking at the chart afterwards, we see that is true. If the stock had then broken the new BSL, we would have sold but it did not. In answer specifically. Your buy action was the break of the brl. The following buys were confirmations of that trade. Buying on a pullback or how much of a pullback depends on a couple of things that all need to be considered individually: - How high the stock has run up during the buy signal i.e. high pole or standard three box - Last resistance or support level and R/R ratio. - Where on its trading band is the stock trading - How oversold or undersold the sector is and whether in X's or O's Right now ASND is in a sector that just recently reversed up from low oversold levels. ASND is still making higher tops and bottoms so if you didn't get it on a pullback, I'd say that is OK. Now, if the sector was at 70% and just flipped to O's, even if ASND was making higher tops and bottoms, I'd say definitely wait for pullbacks and good R/R ratio's. In both case ASND has the same chart pattern etc, the difference is the market/sector condition. Hope that helped, Jan