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

To: freelyhovering who wrote (6966)	9/9/1998 12:21:00 AM
From: Ms. X	Respond to of 34808

setup Sorry Myron. I am blatently using you to setup for a grub on the next post. I hope you forgive me. Forever P&F in whatever way - grub or otherwise :-)

To: freelyhovering who wrote (6966)	9/9/1998 2:49:00 AM
From: Smooth Drive	Read Replies (1) \| Respond to of 34808

Howdy Myron, Late night meeting for me. I'll give ya some end of day foggy answers. >>Eric--The rules of P&F state that entries can only be made in one direction per day.<< Yes and no. A.W. Cohen's (Chartcraft) 3-box reversal P&F charting system established one direction per day. Either up in X's or down in O's based on the daily high and low. The early form of P&F however, as developed in the late 1800's and taught most notably by deVillers, Whellan and Wycoff and still practiced today by some very heavy hitters, is based on changing the chart during the entire day whenever a box (whatever its size)can be filled, up or down. >>Today GLM opened at 13.5 and then traded down into the low 11's. If it opens tomorrow at 11.5 and then goes to 14, which way do we do on the chart mark-up?<< A 3 box reversal P&F chart is either in a column of X's or O's. (And either on a buy (bullish)or sell (bearish) signal, never neutral. And either short term bullish and long term bearish, or short term bearish and long term bullish, or Oh!) If the stock is in, say, a column of X's, then at the end of the day you must first ask if the stock had a high that would allow filling in one or more boxes (always a full box). If the daily high was in fact one or more boxes higher than the current X, then fill in the box or boxes and move on to the next chart. Forget about any lows. They're not part of today's show. If the daily high did not move up one or more boxes, then see if the low was enough to allow a full three box reversal downward. If it did, fill in the O's. If it didn't, move on to the next chart. Your done with that one for today and it had no movement in either direction. (One of the great things about a P&F chart is the elimination of market noise. If the current X is at say 25, then you will need a high of 26 or higher to fill in the 26 box. 25-7/8 won't get it. A reversal down from 25 would need to go to 22 or lower. Nothing in between will do.) GLM is in a column of X's at 13.5 14 13.5 X X 13 X O X 12.5 X O X 12 O X 11.5 O X 11 O X 10.5 O X 10 O X 9.5 O X 9 O (Note: The above info was taken from the Mircrosoft Investor daily high low data provided in Excel format.) At the end of the day on 9/4 the chart was in a column of O's with the lowest sitting at 9. So, first thing you asked is did the low fall to 8.5 or lower? The low was actually at 10.375, so no boxes lower could be filled. Next, because you could not go lower, you asked if the stock reversed up at least 3 boxes to a minimum of 10.5. The stock actually had a high of 11.875, so we get to fill in X's up to 11.5 Today's high was 13.5 and the low was 11 1/16. (Another great thing about a P&F chart is gaps. They don't exist. We just fill in the boxes). Now, because the chart was in a column of X's, we first ask if the stock's high was enough to fill in a box or boxes above 11.5. Sure as heck did -- went to 13.5 -- so fill in the boxes. That's it, move on to the next chart. The low isn't applicable. Regarding tomorrow. You will first ask if the stock had a high that would allow the filling of one or more boxes higher. In this case 14 or more. If it does you will fill it in and move on. If it doesn't, you will see if it can reverse down a minimum of 3 boxes, or to 12 or lower. Lastly, to anyone who wants to discuss/argue that one should put in the X's if applicable and then put in the O's too on the same day - or visa versa, please don't bother. Been there done that. I've yet to discuss this subject with anyone who actually hand charted a group of charts both ways. I have. Didn't make a hill of beans to me. More often than not any early buy/sell signals were false and just screwed the system up. >>Also, would a day trader benefit from changing the rule and making two entries today and viewing the ll area as a correction from the high of 13.5? Myron<< Myron, I'm experimenting and having more fun with P&F charts than I should be allowed. But, per the above, I don't think you can do multi directional daily boxes half-ass. You either do it full throttle, with live data and make every box change via the deVillers system, or you use a 3 box reversal system with a one direction daily X or O. I will probably never do much of the old P&F style because I've read it, have an elementary understanding of it, and think Mr. Cohen built a better mousetrap that was a natural evolution of P&F. Among other things, the Cohen P&F system creates better patterns, buy/sell signals, and easier to construct trend lines (and here I'll add the obligatory IMHO). And, it's those buy/sell signals that create our cherished bullish percent indexes, which saved my butt this year. I'm born again brother! I'm born again! Take care Eric