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

To: Hardline who wrote (6253)	8/24/1998 11:00:00 AM
From: wizzards wine	Read Replies (2) \| Respond to of 34811

Morning Hardball, Hope it all works out for you...You read the chart correctly I believe, but I'll comment...KO sector is Bear Confirmed at 32 and in O's...The RS "relative strength" is on a Buy signal in X's, meaning it's out preforming the general market..However KO has given 2 double bottom sell signals in a row and has lower tops,"columns of X's", following those changes back to O's...thus showing supply is in full control... You need a high for the day of 81 to get a new Buy signal...and a new low of 74 even, would give another O at 75 for a new Double Bottom Sell signal, "DBS"... Hope that helps a little, I have found P&F to be very useful in timing what you want after having FAed it... Later Preston

To: Hardline who wrote (6253)	8/24/1998 12:16:00 PM
From: Ms. X	Read Replies (2) \| Respond to of 34811

I saw Preston answered your question already but I wanted to add some commnets. What you and Mrs Hardline need to remember is that P&F will never predict the exact bottom or the exact top. It tells you when supply or demand is in control. Because of this, you will not "get in" at the lower or upper prices. Well, you could because of some luck etc but I think you get the point. It increases your chance for success by stacking things in your favor. With KO: In your favor: -RS is in X's and on a buy signal.It has been outperforming the market (as a whole). -Stock is trading above its trend line (Bullish support line) -You have done your FA which I assume to be good. Not in your favor: -The sector is in a column of O's Bear Confirmed at 32%. -Trend chart is on a sell signal. Looking at this you are in pretty good position for a purchase once you see either the sector reverse up or KO give a buy signal on the chart. First buy signal from here is 81. KO traded (so far) to 80 5/16 today so not quite 81. Yes, we wait for that 81 even, no cheating. If it doesn't break it doesn't break. Can you tell us the FA reason for purchasing coke? Hope this helps, Jan I am