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

To: Ms. X who wrote (8963)	10/23/1998 5:47:00 PM
From: Smooth Drive	Respond to of 34809

Hi ya Jan, Regarding AMAT, and your comment >>Also, at this point with AMAT you have no good stop point.<< One thing you might consider is employing the High Pole Top as a stop, which I've done a great deal of lately. I now place a lot of significance on High Pole Formations. Bruce discusses them a great deal. For those not familiar with a HPT it occurs when a column of X's exceeds the previous column of O's by 3 or more and then reverses down in a column of O's that moves down more than 50% of the previous X column. When that happens, 85% of the time it will result in a double bottom sell signal. Looking at a portion of AMAT: + 35 + 34 + 33 O + 32 O X 31 O X ? 30 O X ? 29 O X ? 28 O X ? 27 O X X ? 26 O X O X ? < High Pole Top (Sell Stop Order) 25 O X O X 24 O X O X 23 O O X 22 O 21 Since there are currently 10 X's in the most recent column, a reversal of more than 50% would be a count of 6 down to 26. (BTW, AMAT hit 33 15/16 today and penetrated the brl and is now in a bullish trading channel.) Take care, Eric