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

To: chartseer who wrote (12209)	1/2/1999 11:36:00 PM
From: Dennis J.	Read Replies (1) \| Respond to of 34811

Hi Chartseer. Happy New Year! Only 10 boxes up may not qualify as a high pole, but moot at this point, since TER has reversed back up 5 boxes already. Last week's action was mostly up, and reduces to a long white candle for the week (bullish, and with most of the move in the last hour on Fri). I am expecting a continuation early this week, next to test the top at 45. I love this formation. Dennis

To: chartseer who wrote (12209)	1/3/1999 8:50:00 AM
From: Bwe	Read Replies (3) \| Respond to of 34811

Good morning, Steve. Aby in his book goes into great detail with regard to the implications of the three types of High Pole formations discussed in this post. Aby summarizes as follows: "These patterns are designed to combat criticism of p&f charts. Such advanced formations provide timing advantages to investors and counteract charges of late signals or warnings. Perhaps the most visible characteristics of the new patterns are their subtlety in developing, their innocuous appearance, and their interrelationship with the general market in determining the extent of price moves." (Aby, Carroll "Point & Figure Charting: The Complete Guide" Revised 1996, pg. 130) What follows is a brief description of the three types of High Pole patterns: High Pole (HP): A stock, currently in a column of X's, exceeds the previous column of X's by at least 3 boxes. The stock then reverses into O's and retraces 50%+ of the previous X column. High Pole Top (HPT): The difference between a HPT and a HP is that the HPT occurs at or near a stock's yearly or all time price high. The HPT carries a greater significance and implies that the recent highs in the stock are going to stand for some time to come. High Pole at the Bearish Resistance Line (HPB): To quote Burke on this one: "The difference in this formation is that the last up column penetrates a Bearish Resistance Line (BRL) on the way up." The pullback and retracement of the up column comes back down on the BRL, and as Burke puts it; "This is a deadly formation...." To summarize, the HPT occurs at or near a stock's high. A HP can occur anywhere else on a stock's p&f chart. A HPB breaks through the BRL when the stock has it's good upmove in X's (don't forget, this rising X column must exceed the previous X column by at least 3 boxes) and then pulls back right around the BRL. Burke often points out that the HPB was the favorite short sale pattern of the late Earl Blumenthal. Best regards, Bruce