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

To: quote 007 who wrote (12970)	1/24/1999 7:44:00 AM
From: Bwe	Read Replies (3) \| Respond to of 34811

Stuart, It's really quite the opposite. HP's and HPT's are better clue givers to breakdowns in stocks than low poles are to future price increases. And yes, the NYSEBP's status is the major coincidental factor in the resulting aftermath of HP's. As Chartseer pointed out to me this morning, and Chartcraft has been saying all week, HP's are sprouting up all over the place and is a danger signal, at least for the short term, for the market. Low Poles, by the way, usually take a much longer time to work out to the upside than HP's do to the downside. So you have more time to pick up a stock that moves into a low pole, because often, a p&f chart will undergo a series of low pole patterns which demonstrates accumulation of the stock. This will result in a bigger, longer lasting upmove. Stocks come back to earth after HP's rather swiftly. When the market is peachy keen as it has been, one can be lulled into stock's bouncing back quickly or not responding to the downside after HP's, however, when the market turns bearish, you can be sure stock's will react bearishly after HP patterns. Aby does a great treatment of low poles in his excellent book. Take care, Bruce