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

To: papi riqui who wrote (5821)	8/13/1998 10:27:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34824

Lesson on P&Fing and info on DJIA too - ohh, ahhh... Couple of questions this week on how we chart the movement of stock. Let's say you have XYZ chart and it is in a column of X's at 50. At the end of the trading day your first question is "did XYZ trade to 51?" If yes, put another X REGARDLESS of where it traded down to during the day. (If it was a big enough move for a reversal down the next day, take note) If it did not trade to 51, you THEN ask yourself, "did it trade low enough for a three box reversal (47)?" If yes, add three O's and a new column. If you cannot answer yes to either question, you do nothing and move on. I'm going to use the DJIA chart for examples. Today's action. 8800 8 8750- ----O --------- 8700 O X 8650 O X O Top 8600 O X O X <--Today it traded as high as 8600 on the chart. 8550 O X O X We added an X because it was in X's from yesterday 8500----- O X O X --It doesn't matter how low the Dow went today we 8450 O X O X answered our first question. "Did it trade high 8400 O O X enough to close another box up". Yes 8350 * O 8300 * Tomorrow possibility 1 8800 8 8750- ----O --------- 8700 O X 8650 O X O ? <-Our first question tomorrow after close will be 8600 O X O X "Did it trade as high as 8650 to close another box 8550 O X O X up?" If yes, we add an X. Still it doesn't matter 8500----- O X O X --how low it traded in the day. Why? Because we are 8450 O X O X in a column of X's. 8400 O O X 8350 * O 8300 * Tomorrw possibility 2 8800 8 8750- ----O --------- 8700 O X 8650 O X O Let's say the Dow trades to 8649 as a high and 8600 O X O X 8449 as a low. Our first question is again "Did 8550 O X O X it trade high enough 8650 to add another box up?" 8500----- O X O X --Answer, no. THEN we ask "OK, did it trade low 8450 O X O X enough 8450 to add a three box reversal down?" 8400 O O X Answer, no. So, we would do nothing. 8350 * O 8300 * Tomorrow Possibility 3 This by the way is the most probable for tomorrow. Dow closed only 9.5 pts away from a reversal. 8800 8 8750- ----O --------- 8700 O X As above, we would ask if it traded high enough 8650 O X O to close a box up at 8650. If the answer is no, 8600 O X O X we would ask if it traded low enough for a three 8550 O X O X O box reversal down 8450. Answer, yes. We can 8500----- O X O X O now add three new O's to the chart. 8450 O X O X O 8400 O O X 8350 * O 8300 * Hope this helped :-)

To: papi riqui who wrote (5821)	8/13/1998 11:55:00 PM
From: Ms. X	Read Replies (4) \| Respond to of 34824

I remember you left and were going to miss the contest. You can see the contest results by the way, at jsinclair.interspeed.net We did miss you of course. I hadn't seen your name pop up and when I did, I had to say something!!!! :-) I'm so glad things worked out and you found us here. Good timing to come back. When things so low. I'm excited 'cause the NYSE BP hasn't been this low since 1990!!! Opportunity when it comes <VBG> It's the little things in life. Tommy will be around. He loves this group. Jan I am