Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bwe who wrote (8870)	10/21/1998 10:45:00 PM
From: Smooth Drive	Respond to of 34811

Evening Bruce, Great post Bruce. Interesting. Very interesting. As you know I too get the Quarterly Options chartbook but I got the older data from Carlton Scobey's P&F site. His charts are very nice for being able to go back a number of years for data. He's a most kind ole Mississippi gentleman. Anyway, his chart shows a double bottom sell at 42, so a Revised Bullish Support Line (RBSL) would indeed start at 41. I didn't explain that very well. The main point I was trying to show Bruce was the sheer number of RBSL's that could be drawn on PFE's chart. (Or for that matter many of my hand charts.) All those RBSL's that I showed here www3.techstocks.com are legitimate. Soooo many RBSL's makes it difficult for me to try and say which one is MOST important. Regarding short term uptrend and downtrend, I know how to create them and you can see from my post that all the RBSL's that I drew in were below a sell signal. None of them are short term lines. Look at Aby's charts on page 157. First Honeywell - why no RBSL starting at 56? Or Pacific starting at 39 and then 37? Lastly the IMC chart - why no RBSL starting at 49? Perhaps it's as you mention relative to being long term and tested. I guess picking the most important RBSL seems a bit arbitrary to me at this point, and leading too often to false signals. I don't have the confidence to change the trading channel with them right now. I need to have a true penetration of the original BSL (could I be a rotten conservative up tight pinhead P&F traditionalist?). As you know, before reading Aby's book I was creating revised lines but in hindsight they were much too esotarical and I've abandoned them. Speaking of short term trend lines - now those I'm enjoying. Got a number of points I would like your opinion on. Next. Now lastly Bruce, anyone who has the expertise and P&F acumen to change a trading channel with a penetration of a RBSL is the man. You calling me the man is like Superman patting Jimmy on the head and telling him "He's the man" while he's winking at Lois and Mr. White. Please don't do that anymore Bruce. It's embarrassing. Promise me Bruce. Promise me now. Take care, Eric

To: Bwe who wrote (8870)	10/27/1998 1:22:00 AM
From: Smooth Drive	Read Replies (2) \| Respond to of 34811

Evening Bruce, Per our previous discussions about revised trend lines, I took the Chartcraft Options sheets of all the Dow stocks, updated them, (didn't want to use my hand charts) and did the following: 1) Created a Revised Bullish Support Line (RBSL) whenever there was a sell signal above an original BSL; 2) Created a Revised Bearish Resistance Line (RBRL) whenever there was a buy signal below the original BRL (all in accordance with Aby's book); and 3) Whenever one of the revised lines was truly penetrated, I changed the trading channel. Bruce, I'm more than pleasantly surprised. Got so excited about them that I added revised trend lines to a number of the market indicators I'm keeping and their signals are much improved. Revised trend lines didn't change all the Dow stocks from the original trend lines, but, as Aby makes clear, "Trendlines are useful only if they stay current." I won't bore you with a rundown on all 30 stocks, but the revised lines would have got one out earlier and with additional profits on a number of issues. Further, I don't see one instance where one would have been hurt using these revised trend lines. A few of the more notable were EK, GE, IBM and KO. If you look at KO for instance, the RBSL would have taken one out at 78 back in August. A subsequent re-purchase at the original BSL in the 59 to 60 area would have been easy money. You were discussing BEN earlier. If one were using revised trend lines, the buy signal at 31 created a RBRL starting at 32 -- and it was truly penetrated when the next column of X's gave the buy signal at 32. This changed the trading channel to bullish with a new BSL being formed at 25. A week ago I was a skeptic -- now I see nothing but good things from revised trend lines. Take care, Eric