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

To: Giordano Bruno who wrote (5893)	8/15/1998 10:05:00 AM
From: chartseer	Read Replies (1) \| Respond to of 34828

Thanks for the Barrons article. Checked out charts APC and CHKPF. Would not buy either one at this time. Both broke double bottoms and RS is on Sell in a column of Os. Put them on my stocks to watch list. The kind of charts I like are not the charts that have already doubled, tripled, and quadrupled, but the charts that seem to have turned up and are near their stop loss exit points. That now have low risk and room for substantial rewards .Examples: HET,IDTI,and NOVL. Still expect a strong technical rally. May have jumped the gun Friday. Was spooked by the strong futures market and a positive market indicator.

To: Giordano Bruno who wrote (5893)	8/15/1998 11:06:00 AM
From: Ms. X	Read Replies (2) \| Respond to of 34828

Long Tail down. This pattern has been mentioned a couple of times and I thought it a good idea to go over some aspects of the trade. A long tail down (the reverse of a High Pole) consists of twenty boxes strait down without one reversal to the upside. Often used in trading for a "dead cat bounce". 45 -----------------* ------- 44 X X * 43* X X O X O * 42 * 3 O X O X O * 41 2 X O X O X O 40 X --X O X O X O X O -- 39 X O X O X O X 4 * 5 38 X O X O X O X * O 37 X O X O X O * O 36 X O O * O 35 ------------------O -- 34 6 33 O 32 7 31 O 30 -----------------O -- 29 O 28 O 27 O 26 O Here is a stock that has fallen 23 boxes (O's) 25-------------------O -At this point, we don't know if this is the 24 8 bottom so we wait for a reversal up in X's to 23 O see. 22 O Reason: One, we need to set a stop point on 21 23rd O down --> O a trade. Two, in order to get a buy signal from 20----------------------here, it would have to move up to 45. Not good. 45 -----------------* ------- 44 X X * 43* X X O X O * 42 * 3 O X O X O * 41 2 X O X O X O 40 X --X O X O X O X O -- 39 X O X O X O X 4 * 5 38 X O X O X O X * O 37 X O X O X O * O 36 X O O * O 35 ------------------O -- 34 6 33 O 32 7 31 O 30 -----------------O -- 29 O 28 O 27 O 26 O 25-------------------O ----- 24 8 X<--Here it has reversed up in X's setting up 23 O X a trade. See how the reversal up into X's 22 O X defines the bottom (perhaps) in O's? Now 21 O you have a guide. 20-----------------------<--This sets your stop point here at 20. Which would be a double bottom break and the sign to get out of Dodge 'cause this thing could be a teenager by dawn... 45 -----------------* ------- 44 X X * 43* X X O X O * 42 * 3 O X O X O * 41 2 X O X O X O 40 X --X O X O X O X O -- 39 X O X O X O X 4 * 5 38 X O X O X O X * O 37 X O X O X O * O 36 X O O * O 35 ------------------O -- 34 6 33 O 32 7 31 O 30 -----------------O -- Let's say it does reverse back down after 29 O the first reversal up. Now, you have a 28 O possible double top buy signal at 25. Some 27 O prefer to wait for a buy signal before 26 O entering. 25-------------------O <--Next possible buy signal 24 8 X 23 O X O 22 O X O 21 O O <--reversal to support. 20-------------------------<--Stop point. Breaks support.) Hope this helped. Jan I am P.S. Of course if you subscribe to the TDT trading rules, you would buy the stock or options rather, at the 23 box down and be damned the reversal up. It helps to be somewhat psychic when in the TDT club. If psycic abilities don't run in your family.....well, I warned ya. :-)