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

To: papi riqui who wrote (13228)	1/29/1999 11:16:00 AM
From: Lost1	Read Replies (2) \| Respond to of 34811

RE -IOM ..I thought he said stop of 6..?.. ONce again they tossed up his "last" picks...from 4 wks. ago. They were impressive even though much shorter time frame than Tom likes to see displayed. "Tough show you got here" was what he said. Can you imagine the pressure he's under in a situation like that. People calling in w/ individual stock questions. He has to respond to any/all inquiries off the top of his head. He's was very impressive! GOOOO TOM!

To: papi riqui who wrote (13228)	1/29/1999 11:17:00 AM
From: papi riqui	Respond to of 34811

More on the Bullish Shakeout formation (re IOM). On pg. 50 of Tom's book, he writes that Bullish Shakeout Formations is one of his favorite patterns because they have a high degree of probability. It is called the Shakeout because the pattern easily deceives investors when the sell signal is given. He adds that the pattern should only be used in a bull market ( not much success in a bear market-go figure). A true shakeout pattern must have the following 6 attributes: 1. stock must be in a strong uptrend. 2. Stock should be trading above the Bullish Support line. 3. Stock must rise to a level where it forms 2 tops at the same price. 4. The subsequent reversal of the stock from these 2 tops must give a Double Bottom sell signal. 5. The sell signal must be the 1st in this uptrend, and 6. The RS chart must be on a buy signal. Tom adds that this is primarily a trading pattern and that a position can be taken once the stock reverses back into Xs on the first 3-box reversal back up the chart after the Double Bottom sell signal (with a stop at the level of the DB sell signal). Tom reiterates that the reliability of this formation diminishes when the overall market is in a bearish mode.