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

To: Don Pueblo who wrote (18208)	4/16/1999 12:29:00 PM
From: Iceberg	Read Replies (1) \| Respond to of 34817

>I'm not going to sit here and try to explain Point and Figure charting. >What I will do is ask you to check with a few people that actually understand Point and Figure Charting. I used to tell my ex-wife that the technique is only as good as the person that is applying it. (And, by the way, if you look at a "daily" P&F chart, you will see, in some of the boxes, numbers like "4" or "7". That's April and July. But don't expect 30 Xs and Os in April, and don't try and "figure it out" without reading the book. You'll just get confused.) TLC, Thank you for your thoughtful response. And you are correct. Dates are on some PnF charts. However, I don't think I'm confused about time, as you seemed to imply. I still maintain that time is ignored in PnF theory, and must be ignored in practice, if PnF is to be used as it was designed. Date markers on PnF charts mean nothing, or at least nothing in terms of being an integral component of a PnF chart, even though date markers may be present on some PnF charts. According to Kermit C. Zieg, author of the book, "Point and Figure Commodity & Stock Trading Techniques"... "Dates may be indicated on the chart, but this is done solely as a matter of convenience and has no relevance to decision making or to signal descriptions [emphasis mine]". [page 21] In addition... "The basic premise of point and figure charting and trading is that the Law of Supply and Demand, and nothing else [emphasis mine] governs the price of a security or commodity. When demand is stronger than supply, the stock's price rises; when supply exceeds demand, the price declines; when supply and demand are contesting for supremacy, the securities' price moves sideways." [page 21] Although I realize some PnF books, and some PnF charts contain date markers, Zeig's text does not. And, IMO, there is good reason for the absence of date markers. Dates and time simply have no meaning in terms of properly using PnF. Kermit Zieg has outstanding credentials, and I highly recommend Zieg's book as a valuable addition to any serious PnFer's library of reference material. It is published by Trader's Press. I can provide a link for their web site if you are interested in the book. Ice