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

To: wizzards wine who wrote (6267)	8/24/1998 4:39:00 PM
From: chartseer	Read Replies (1) \| Respond to of 34811

When dealing in options every point counts. In pure P&F you are correct. P&F is not for option play since time is not reflected. But some times you can see patterns unfolding before your eyes that simply tell you that some thing familiar is taking place. In IBM the lower tops could lead to a buy signal but then I would flip my position. With the NYSEBP not giving a reversal and since I always try to maintain a option position in IBM, at this time based on my interpretation I prefer a put (SHORT)here. Of course the prudent thing would be to wait for the sell signal and the pull back etc. I m playing or gambling that IBM is going to 109. I could very well be wrong and have been wrong in the past. Don t expect perfection just an edge. I also like NN even though there is no buy signal as yet. I anticipate a buy signal in NN and am considering calls there also. I also realize that P&F does not work for all issues and over the many years try to feel the chart movement rather than the absolute rigid rules. Hope this doesn t sound like preaching and make sense. These are only my opinions and they could very well be wrong. Guess that where the "seer" comes in. Wish the contest would start after Aug so I would have latest issue of chartcraft to flip the pages and pick 5 good charts. Right now planning to go with 5 charts I have but would prefer to have option of whole chartcraft monthly book. Chartseer

To: wizzards wine who wrote (6267)	8/24/1998 7:09:00 PM
From: chartseer	Read Replies (1) \| Respond to of 34811

Just a few more thoughts so you can understand my thinking. I usually keep a BSL and a BRL on every chart. It is my thinking that a stock is more likely to stay between those two lines unless there is really a strong trend in one direction or the other. Maybe my 27 years of employment on the floor of the NYSE and my understanding of the specialist system and his book affects my thinking. I also chart DIA. Check the chart on DIA and tell me would the DIA chart have any affect on the way you would expect IBM to move? Just trying to lower the odds and increase the edge in option trading. My charts may not be exactly the same as DWA since on the DOW charts I chart I do not compare them with DWA charts. Not all my trades are winning trades. Chartseer