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

To: Talib who wrote (9044)	10/26/1998 9:49:00 AM
From: Ms. X	Read Replies (1) \| Respond to of 34811

Talib, I'll illustrate the resistance and support. Resistance is previous tops of X's, the more at a level the higher the resistance. Support is previous bottoms of O's, the more at a level the better the support. Here at the top of the chart there is resistance at the 19.5 level dating back to October of last year. 19.5 A B <-resistance X <--Broke recent resistance at 19. 19.0 ---X O X O ----X --X --9 --X <--This was heavy resistance at 19 18.5 X O X O X O X O X O X 18.0 ---X O --1 X --X O X O X O X --------------- 17.5 9 O X O X 5 X 8 O X 17.0 ---X ----O X O X O 7 ----O X --------------- 16.5 X 2 O 6 X A X 16.0 ---X ----+-------O X ----O <--Support level 15.5 6 \| * O <--Support level 15.0 ---X ----+---* ----------------------------- For the vertical count. You would count the X's in the column that created the buy signal after the last sell signal. On this chart this happens to be the recent column of X's. Count from 16.5 to 19.5 and you get 7. 7 X 3(the box reversal) = 21. 21 X .5 (the box size) = 10.5 Add the 10.5 to the bottom of the O's that created the last sell signal (which is at 16). 16+ 10.5 = 26.5. That is your vertical count. Stop loss would be 15, the final break of two double bottoms. Entry should be on a pullback since it is at resistance again at 19.5. Even if it breaks the resistance you should enter on a pullback hopefully, one half the height of the current column of X's. Approx 18. Hope all that helps, Jan I am