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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Sawtooth who wrote (16005)	8/13/1998 5:43:00 PM
From: Gerald Walls	Read Replies (1) \| Respond to of 77400

I was wondering more about the horizontal axis; what does each column of x's or o's represent? Each column is a trend. An X column is an uptrend and an O column is a downtrend. A new column is started when the reversal criteria is met. P&F charts don't directly track time like almost all other graphs do, but if you notice in the example that one row had a "7" in it and another had an "8" in it. These represent the start of July and August. (1-9, A, B, C represent the months.)

To: Sawtooth who wrote (16005)	8/13/1998 5:50:00 PM
From: Ms. X	Read Replies (3) \| Respond to of 77400

Oh, so sorry Tim ...blush X's and O's represent the movement of the stock within the box system. Based on supply and demand not volatility. For instance, on the Cisco chart, you can see three times the stock moved up to 100 (X's) before retracing down (O's). This shows that for some reason there are not buyers above 100. However, it is staying in a trading range so there aren't sellers past a certain price either. You will see in the chart numbers 3 4 5 etc. This represents months. Since P&F is based on supply and demand not daily price movement, you only mark the months - not the days. If it is a very volatile stock, you would see many X and O columns in between months whereas a less volatile stock my have a single column representing several months. If you would like more info by all means come to the Point and Figure thread. We talk about the market and individual stocks at length. We explain all the particulars over there. Take care, Jan I am