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

To: Webhead who wrote (8731)	10/16/1998 1:54:00 AM
From: Dennis J.	Respond to of 34816

Webhead. There are several real students of the fine art of point and figure charting who will certainly provide an erudite explanation of this rather messy looking chart. I leave that work to them. But for the moment, examine the DWA chart for SPY, and let your imagination wander a bit. Change the plot to a 2-box reversal and then to a one-box reversal. As I did this, I saw a crude triangle formation which was violated to the downside, followed by a major reversal across and out the top of this triangle, and penetrating all resistance lines except the final horizontal spread top at 107. A further move higher will hurdle this last resistance, and only the former high at about 116 will remain. Above that, everyone will have a profit, selling should diminish, and an upwards trending chart could develop. Is this looking into the dark shadows for imaginary shapes? Maybe. But as I do, I see a battlefield strewn with soldiers, casualties of the war between supply and demand. Real battlefields rarely have sharp lines marking the outlines of the struggle. (NFL excepted.) But the interpretation should be clear, just the same. Demand has won a hard fought battle, and the battlefront is moving now to higher ground. It seems safe to bet on the winner. Of course, JMHO. I could be wrong. Good luck, Dennis