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

To: Ben Antanaitis who wrote (9303)	11/5/1998 10:24:00 PM
From: Smooth Drive	Respond to of 34811

Hello Ben, Well done explanation on your earlier post relative to VPO. Regarding >>After all, I personally trade using 2% log charts that no one around here uses or recognizes.<< Not so fast there big P&F guy. I have at least been thinking about that very subject a great deal lately. Ben, if you get in the mood share some of your thoughts on a 2% log. Not for the purpose of debating, defending etc., -- but enlightenment. I'm just damn curious. I guess I'm more interested in what took you to 2%, as opposed to some other number? Did you run some optimizing charts? Trial and error? When you consider the fact that Ken Tower, who employs that old time type of P&F as taught by deVillers and Whellan, now uses different % log charts for reversal requirements rather than fixed box sizes -- well -- he's no dummy. You may very well be leading the next charge or learning curve up for the end of day P&Fers who could someday use X% log charts as the norm. I guess Ben it's the broad market indicators (SPX, OEX, DJUA, etc.) and a few of the charts I've created that I'm most interested in possibly experimenting with a log chart. For instance, take the DJIA: Chartcraft updates this chart and always shows it as a 20 x 60 (20 point box and 60 point reversal) and a 50 x 150. Well, as an example. Say we're using the 20 point box and the Dow's at 8900. Then the next box is at 8920 for a total increase of .22%. A 2% log chart on the other hand would take the next box from 8900 to 9078. That's quite a difference! Do, or would you also use 2% on these types of charts with the higher numbers? Do you change the % at certain intervals? Do you ever rub your finger so hard and fast between your itchy toes that you cause personal injury? Thanks and take care. Eric