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Gold/Mining/Energy : CGI Group (GIB.A) - -- Ignore unavailable to you. Want to Upgrade?

To: Clive H. who wrote (548)	7/22/1998 7:40:00 PM
From: Greg R	Respond to of 1673

Re: INPATHIQUE Questions: how easy is it to produce an INPATHIQUE chart? Is it time consuming and does it require a computer graphics package? I find it easy, but I have had practice. The time depends upon how accurately you are attempting to get the chart and how clear the pattern is on the stock. Some stand right out, others you have to dig for like GIB.A. There are so many stocks, I normally prefer to go for those that stand out. What I do: 1 - Look at the High-Low chart for the stock in question from a commercial site on the screen example: tscn.com Visually look to see how readily the patterns stand out and whether I think I could find and draw them. (Total time 3 minutes) 2 - Grab a copy of the GIF image and load it into a graphics package on my computer such as Lotus's Freelance graphics package. Then I draw the INPATHIQUE lines where I think they should be and see if I can readily get them to closely come to meet where the rules of INPATHIQUE Analysis state they must exactly meet. Total time (20 minutes) Note - hold and buy type investors who just want to know the best time and price to buy in at (not precisely, but close), would probably never do more. 3 - If you want project precisely as possible where and when the price is going to be, then you need to precisely draw the patterns. 3a - High-low historical price data is obtained from a commercial site. The cost is normally less than a dollar. Grab the data as far back as you can get it (five to ten years) I have 18 years for IBM and eight years for GIB.A 3b - This data is cleaned to ensure that pre split prices relate to todays prices. Remove holidays when the stock was not available for trading and the bid and ask prices on days that the stock did not trade. I clean it by first importing into a spread sheet program. I add a couple of years of empty dates to the end to allow for the addition of day to day prices in the future. 3c - The cleaned data is imported into my graphics package's high-low charting function. Others simply chart using the spread sheet's graphics function. 3d - Then I draw my lines again. This time however I can zoom in on intersection points and ensure my drawing of the INPATHIQUE lines is a precise as humanly possible. This can still be difficult on a large chart such as IBM's (3700 days of data) I just recently discovered I had a 22 day error. Too much, normally, my target is to be accurate within two trading days. (Time for this step can be four to eight hours. It can be trial and error until you find THE pattern that fits the rules). As the weeks pass and I live with the chart and add more days of data to it, I will often discover things I did not originally see and adjust the pattern. Also, the are INPATHIQUE patterns within patterns. If you notice on the GIB.A, there are three sets of patterns, each nestled within each other. Each of these ever finer patterns take time to analyze. The total time depends upon what kind of investor you are as to whether you are wanting a chart you can watch from hour to hour to determine when to trade, or you are buy and hold. It is manual effort. Although the patterns are created by the actions of a computer, they cannot currently be discovered and drawn by a computer. It takes a human. That is why INPATHIQUE stands for "Insight through neurological pattern analysis techniques". A user friendly graphics package is definitely you best friend. That and a responsive computer that redraws the pattern as fast you draw it.