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

To: Bwe who wrote (8771)10/18/1998 11:20:00 AM
From: iGregor  Read Replies (3) | Respond to of 34811
 
Here's a two-part question for anyone:

(1) Has the NYSE BP reversed up, yet?

(2) How is the "Daily % Change" column on the DWA "Sector BP" page to be interpreted? Is it an incremental (day to day) change? Or is it an accumulation of all daily changes since the prior Tuesday's update? I noticed the NYSE BP "Daily % Change" was 5% as of Thursday PM and 3% as of Friday PM. Does this mean there was an increase of 5% + 3% =8% in the NYSE BP during Thursday & Friday (and therefore a reversal to Xs)? Or does this mean that the cumulative daily increase, which was 5% as of Thursday, actually declined to 3% on Friday (doubtful)?

Bueller? Bueller? Bueller? Anyone...?

Thanks, East



To: Bwe who wrote (8771)10/21/1998 12:42:00 AM
From: Smooth Drive  Read Replies (1) | Respond to of 34811
 
Hey Bruce,

How's everything in the big city?

Let's kick around Aby's discussion of revised trend lines, and specifically what he describes in his book as a Revised Bullish Support Line (RBSL).

In some of your recent posts relative to PFE, you were describing a BSL much different than the one most folks see on the DWA site. You were/are using a RBSL on PFE.

Per Aby, a RBSL can be started anytime there is a sell signal above the original BSL by going and starting the RBSL at the lowest O in that sell signal. Since you forced me to start hand charting PFE, I'll put some of it up:

120 X               X                                              
118 X O X           X O                                            
116 X O X O         X O                                            
114 X O X O X   X   X O                                            
112 X O   O X O X O X O                                            
110 X     O X O X O X O                                            
108 X     5 X O 6 O X 8 X               X                          
106 X     O * O X 7 * O X O             X O                        
104 X     *   O X *   O X O             X O                        
102 X         O *     O X O X       X   X A                         
100 X         *       O X O X O X   X O X O                        
99  X                 O X O X O X O X O X O         X              
98  X                 O * O X O X O X O X O         X O            
97                    *   O X O X O X O X O         X O            
96                        O X O X O X O X O     X   X O            
95                        O X O X O X O   O     X O X              
94                        O X O * O *     O     X O X              
93                        O X *   *       O     X O X              
92                        9 *             O X   X O X              
91                        *               O X O X O X              
90                                        O X O X O X              
89                                        O * O X O X              
88                                        *   O X O X *             
87                                            O X O *               
86                                            O * *                   
                                              *


Phew!! That was too much work.

The original BSL formed in 1994 at 13.50 and is currently sitting at 84. After basing at 13.50, the stock skyrocketed and all but rendered the original BSL a distant memory. So, using Aby's criteria, RBSL's could have been started one box below the bottom sell signal at 42, 52, 65, 67, (not shown here) and those that I show above at 106, 102, 98, 92, 89 and 86. You can see where the above RBSL's were taken out and the other more long term RBSL's started getting penetrated in the 95 area.

Aby states that the RBSL's act as early warnings of price reversals.
He also said that "Investors can do a better job of preserving profits and entering protective stops because warnings surface at higher price levels."

Do you ever change a stocks trading channel, from say bullish to bearish, by a penetration of a RBSL? Or do you always wait until the original BSL is penetrated?

On the above chart, as I'm seeing on many of my hand charts where I started drawing in RBSL's, you can get sooooo many of them. I guess I'm seeing them more as strong shorter term signals. But, which one or ones have the most significance?

How are you using RBSL's now?

I know that Ben A likes Aby's book as much as you and I. Any thoughts Ben?

Take care,

Eric



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