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: Giordano Bruno who wrote (5281)	8/2/1998 8:58:00 AM
From: chartseer	Read Replies (2) \| Respond to of 34811

A few answers to previous questions; Passed on my copies of A W Cohens book to fellow investors many years ago. Now wish I had retained at least one copy for my self. Chartcraft used to send you his book with every subscription. Never actually sold a stock short because of unlimited risk. Rather buy puts and pay a premium to limit my risk to the cost of the option.The loss of a expired worthless put could very well be less than the loss you might have in an actual short sale of the same security. Two books are all you need, Thomas Dorsey's Point and Figure Charting. Believe me his insight into the NYSE Bullish Percent Index alone is worth the price of the book. This book matured me. How I Made $1,000,000 In The Stock Market by Nicholas Darvas for his use of stop loss orders. Using PnF in place of his plateau method. Even though I am constantly reading every book I can find these two would be I believe all the knowledge you would need to be a successful investor. Currently hand charting 130 issues which includes the DOW 30. Best chart at the moment MU. My favorite pattern spread double bottom.Big W. If you invert the Big W this would give you a Big M spread double top which is the picture I am getting from the Peter Eliades Barrons article posted here previously by Jjsirus. Only Peter failed to tell us what wave we are on.Those familiar with some of Peter s former Elliott wave predictions will understand that last statement. But remember even a stopped clock has the right time twice in a day. My market indictor is based on the DJIA 30 stocks PnF charts. I have assigned positive and negative points to PnF patterns. As I plot the charts each day I add up the points and get positive or negative total. I then chart this total and chart moving averages based on these totals. After a while you can actually gauge the market by how the moving averages cross each other. Example, PG just recently went from very positive to very negative number. Of course this method does not show the weight that some issues like IBM have on the Dow. In my method each issue is an equal 1/30 th. Don t know if this is an advantage or disadvantage. I tried to keep it as simple as I could. I guess I am in reality charting a DJIA Bullish Percent Index of a sort.