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

To: Bwe who wrote (14382)	2/21/1999 8:48:00 PM
From: Smooth Drive	Read Replies (1) \| Respond to of 34809

Hello Bruce, All's well with me Bruce. It's you good friend that our thoughts have been with. It sounds like you kicked that nasty old flu bug well below the "Had ya and now beat ya resistance line". Regarding SZA, I do follow it first on an FA level and then P&F. First discussed it here Message 7230651. One of my most watched P&F patterns, the high pole, proved right and there was indeed a sell signal. SZA just keeps buying out firms and could well have its day in sun -- but not yet. A little Sunday rambling: I've been having an interesting time reviewing P&F charts with the standard indicators that come with TC2000. I'm basically looking at the P&F buy/sell signals and reversal dates and seeing what the standard TA indicators are signaling. It's been most revealing. For instance when I discussed SZA back on 1/12/99 had I been reviewing the indicators that I find work well with the P&F chart I would have added an additional line or two about what I saw coming (and did come). My first big revelation (probably everyone in the P&F world knew it but me) is the BREAKOUT. The P&F chart reveals a breakout better than anything I've looked at. And, breakouts just shout before anything else. There is no lag. It shows it the day it happens. Here's something I would recommend folk's give a shot at. Purchase the Chartcraft quarterly options book. Start anywhere, draw in the Bullish Support Lines (BSL) and Bearish Resistance Lines (BRL). Then, take a pure mechanical approach and 1) when the stock is above the BSL buy on every buy signal and sell on the next sell signal (don't short). For stocks trading below their BRL go short on every sell signal and cover on the next buy signal. Assume you are buying 100 stocks and $20 commissions. Simply calculate the difference. It's fun and very revealing. You can also do this little exercise at the DWA site -- but the Chartcraft charts often provide more historical data and it's easier to visually see trading range and trending when the whole charts in front of you and you don't have to scroll. First obvious revelation: Know if the P&F chart is trading range bound or trending. A P&F trading range stock is worthless when using a P&F mechanical trading system. A P&F trending stock will make the position trader money. The P&F chart and some homework will help determine if it's trading range or trending. IMO, the next great leap in P&F charting will be optimized charts. The person or firm that provides optimized P&F charts, both individual stocks and indexes, will be the MSFT of TA charting. Take care, Eric