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

To: iGregor who wrote (9291)	11/5/1998 12:49:00 PM
From: iGregor	Respond to of 34823

To All. Please ignore my post #9291, and comment on this, instead. I am trying to simplify/streamline the steps outlined in "Dorsey" (page 24) for determining price objective. I think a simpler approach might be to: (1) find the most recent sell signal that is followed by a buy signal; (2) determine the range of the price increase of the buy signal column of Xs; (3) either add thrice (for 3 box reversals) that range to the bottom of the column or add twice that range to the last X in the column; (4) the result = price objective. This would work as follows: Step (1)--the most recent sell signal followed by a buy signal is shown on the chart below. Step (2)--the range of the price increase of the buy signal column of Xs is taken off the chart as 8-4=4 (forget about the 1/4 & 1/2 stuff) Step (3)--triple the price increase 43=12 and add it to the bottom of the range which = 4 in this case. Step (4)--the price objective = (43)+4 = 16 8.5 8.0 X <--top of latest buy signal column of Xs 7.5 XO 7.0 XO 6.5 XO 6.0 X 5.5 X X <---recent buy signal 5.0 X X X 4.75 XOXOX 4.50 XOXOX 4.25 XOXOX 4.00 X O <---recent sell signal 3.75 3.50 3.25 3.00 Comments? East