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

To: dave b who wrote (20742)	6/2/1999 6:26:00 AM
From: Dave Shares	Respond to of 34813

Dave B, In fact, the answer to my questions regarding reversals was covered on page 164 of the book (hadn't gotten there on Monday, but read to there last night). When a sector is in bull alert, and reverses back to Os, the risk level becomes the risk level assigned to the sector when it was in the previous column of Os. So if the sector had been bear confirmed prior to reversing to Xs below 30 (bull alert), if the sector reverses back to Os, the risk level would revert back to bear confirmed. Similarly, if sector is bull correction, and reverses back to Xs, the risk level would revert back to the previous column of Xs, which would be bull confirmed (since bull correction always follows a bull confirmed risk level) OK to buy a strong stock on pullback to support (assuming no sell signals given) when sector bull confirmed, and OK to short a weak stock at resistance (assuming no buy signals given) when sector bear confirmed. I will note, however, that overall market conditions must also be factored into these decisions, as market risk levels will contribute to overall risk levels. Hope this helps, and to Tom's credit, my questions on risk level were already answered in the book, I had just not gotten that far. David