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

To: Al Serrao who wrote (12226)	1/4/1999 12:57:00 AM
From: Smooth Drive	Read Replies (1) \| Respond to of 34822

Hello Al, Do you ever get Chartcrafts quarterly option book? If you don't - I would recommend you get the next one. The charts often go back 5 to 8 years. I enjoy just sitting down with them and drawing trend lines and looking at horizontal support and resistance. Take a Chartcraft longterm chart (there are only two charts to the page) and place a sheet of paper over most of the chart - then start exposing the X's and O's by dragging the paper to the right. Stop after a column or two and guess what is going to happen in the next column or two. As you go along identify the very basic patterns that Davis used in his studies. Here's a refresher ianr.unl.edu. Ever P&F nut must be able to spot these 8 simple patterns with ease (BTW - there has been some discussion about triangles. In Davis' studies, the breakout MUST penetrate the trend line. It's not official until that happens.) Something else that's interesting. Take the Chartcraft sheet, and turn it 90 degrees to the right. Look at the entire pattern in this light. Look how the towers appear to get too heavy and change shape. You are right in that bases of accumulation or distribution are going to lead to something that may have some real force. I only trade stocks I hand chart, and all my charts go back years. Get the big picture. See where the previous long term support and resistance is and extend a few trend lines. What's happened in the past after a stock traded sideways? Take care, Eric