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

To: Iceberg who wrote (18256)	4/16/1999 1:50:00 PM
From: Ben Antanaitis	Read Replies (1) \| Respond to of 34817

Iceberg, Thanks <blush>. Some more thoughts re: time and P&F patterns Back in 1965, and in a investing galaxy far, far, away: Robert Davis, who was an Associate Professor of Chemistry at Purdue University, published his 'benchmark' study: "Profit and Probability - Technical Analysis of the Price Fluctuations of Common Stocks by Point and Figure Method". This study, by the way, is the source of the statistics that you see quoted in virtually all of the P&F books about how much profit and how often that profit occurs for each of the various p&f patterns. It is interesting to note that Davis presents us with not only the odds on a pattern being profitable, but also how long it took, on average, to reach that profitability level in both bear and bull markets. This gives us yet another 'connection' between time and p&f patterns. The pattern still tells you buy/sell/hold, but if you have a time reference you can get a feel for how your particular investment is doing re the 'average'. This leads to the general rules of thumb: 1)Never let your losses go beyond 10% 2)Give your trade three months to create profit. If it hasn't, close out the position and move on. 2A)Substitute hours for months in the internet universe <g> Ben A.