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

To: James C. Mc Gowan who wrote (20849)	6/8/1999 9:19:00 AM
From: Tammy DeRosier	Read Replies (1) \| Respond to of 34811

In your example, the stock had broken out but the weekly momentum had turned negative. Since weekly momentum is a short term timing tool, what it suggests is that we try and pick up the bulk of the position on a pullback. Once you have decided that demand is in control of the stock, then you determine do I buy it here or wait for a pullback. If the momentum has just turned negative and maybe the stock is a bit extended then stick your order in a couple of points lower as you will probably get it. Or, for instance, let's say your stock has pulled back to support and the weekly momentum has just flipped back to positive. That suggests the pullback is probably over and the stock is ready to get moving again so you buy there.