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

To: Margaret Mateer who wrote (7648)	9/23/1998 3:17:00 PM
From: stan s.	Read Replies (3) \| Respond to of 34809

His Peggy.....here are some charts.... 1st one's a daily....again you can see the accuracy of the weighted 6 over 10....right now it's a little ambivalent but still in technical buy mode. geocities.com Remember with a system like this a daily chart will whipsaw a bit, that's fine if you have the time and discipline to react...and a real cheap online broker....I'm basically discussing these as if they were individual stocks...but the TA rules also apply to indexes. Okay the second chart is a weekly...all the week's data compressed into a Candle or bar...whatever you want. The weighted MA cross has not yet occurred. Again note the accuracy over the last year and a half....10 signals. geocities.com IT IS slower to react than the daily...but of course much safer... you miss the first couple weeks or so of the upsurge... It might be interesting to buy on the slower weekly...and sell on the quicker daily...just a thought. Oh but the compelling thing on this weekly chart are momentum indicators, ALL signaling buys or very close as they pull up over their respective trigger lines....a big plus...look at the past performance under similar circomstances. Remember they too become periods or weeks rather than days on this chart....i.e. a 14 day RSI is now a 14 period RSI... 3rd chart....the Point and Figure....I don't know if I've even plotted this correctly...it's a 3 reversal amount, high low range. geocities.com Assuming it's correct you can see the upward sweep...higher lows etc....ask Tom or Jan...or one of the enlightened ones that post here. There are several... 4th chart....Jan LOVES these....the kagi....self explanatory really. geocities.com Here's some canned info on weighted moving averages, but remember different stocks and indices react differently and you can tailor your indicators (to some extent) on past performance. You can play with exponential, simple, times series, volume adjusted (I like those)etc. MA's... A weighted moving average is also designed to put more weight on recent data and less weight on past data. A weighted moving average is calculated by multiplying each of the previous day's data by a weight. The following table shows how a 5-day weighted moving average is calculated. Day No. Weight * Price = Weighted Price 1 1 25 25 2 2 26 52 3 3 28 84 4 4 25 100 5 5 29 145 Totals 15 133 = 27.067 Note how the 5-day weighted moving average gives five times more weight to today's price (i.e., 5 * 29) than to the price five days ago (i.e., 1* 25). Good luck, Stan