i must learn to read your point and figure charts Tim, thats for sure. will start from the beginning of your posts. it will take me sometime, but will learn
j
jac
in the old days BC (before computers) point & figure was the easiest to do by hand and pretty informative - i miss them and it's nice to see tim reminding me of my youth i must crawl up into the loft and dig out some of the systems i used then.
good trading
jon
Hi J',i must learn to read your point and figure charts Tim, thats for sure. will start from the beginning of your posts. it will take me sometime, but will learn
j
NRK ended the week at £1.94, a 55% drop in share value in just 5 trading days. The crisis for the bank and its investors continues, but the market as a whole has responded very positively to Mr. darling's intervention. The bloo resistance line at 6400 on last week's chart was blown away by the huge gap up on Wednesday. This bullish move pushed the breakout column of bloo 'X's to 13 strong where, unsurprisingly, it ran out of steam. (I think I may have mentioned earlier in the thread that the last time the index exceeded this 'ceiling' of 13 bloo 'X's in a single column was over a protracted 2 month period between May and July 2005.) So a retracement was very much on the cards but, it was short and sweet, only retreating to the breakout level at 6400 which now becomes support. Historically, the likelihood of the index rising so that the current column of bloo 'X's exceeds the minimum of 3 - i.e. to form a column of 4 or more - is very high indeed. But, if it only manages to fill one more box, this will create a double top at 6500. If (second if) the index fails to move any higher and starts to fall, then the subsequent pressure on the 6400 support area will be huge. If it's breached, (third if ) P&Fers will be looking to go short at 6375. While the story can change very dramatically and equally quickly, as things stand, the chart remains very BULLISH.
Tim.[/QU
Tim.
Just thought I would reply to your post .I used to use P n F charts some years ago but when I got my pc,I started to use Ma's and do like MA's.However I did find that the PnF method works.I have read several good books on the subject some time ago and you have now got me interested again.I have also done some work on fibonacci numbers etc,so I thought I would point out that,I notice on you 25 point chart,that columns of 3.5.8 and 13 occur regularly.Hope you don't mind me giving my observations about this.
I have read several good books on the subject some time ago and you have now got me interested again.
Of course not Fluke - more observations the better, thank you!I have also done some work on fibonacci numbers etc,so I thought I would point out that,I notice on you 25 point chart,that columns of 3.5.8 and 13 occur regularly.Hope you don't mind me giving my observations about this.
But, if it only manages to fill one more box, this will create a double top at 6500. If (second if) the index fails to move any higher and starts to fall, then the subsequent pressure on the 6400 support area will be huge. If it's breached, (third if ) P&Fers will be looking to go short at 6375.
I think the FTSE heard you Jon and decided to get its **** into gear.:cheesy: The chart overall is now very BULLISH, with pretty much clear sky through to June and July's highs at 6750. With the Dow breaking to new highs this week, there could be a euphoric surge in the U.S. which will bode well for the FTSE. Of some immediate concern is the daily candlestick chart which shows the last three days printing higher lows and higher highs - but - on declining volume. So, the 6600 round number could be a sticking point. Additionally, given the significance of the 6500 level in recent months, the idea that this isn't tested at least once seems unlikely (dotted bloo line on chart). One thing is a virtual certainty. If the 7 year high at 6750 is to be breached, the current line of bloo 'X's won't be the column to do it. To reach that level, the current column would comprise 13 'X's and, in so doing, create a triple top. For the index to print a column of 14 or more, would be the equivalent of Jonny Wilkinson kicking a goal from inside his own 22. So, if the 6750 resistance is to be breached, there will, almost certainly, be a pullback column of red 'O's between now and then.nothing else to say until we see some move out of this.
ps: trying out ProRealTime charts for a change
ok, time to start paying attention as the price reaches the resistance zone of the June highs. There's getting on for 500 points in this now and we don't want to watch it disappear. The zone is not well drawn and goes between 734 and 754 - some will have concluded it got near enough and exited yesterday or near the close today. Others will wait and see.
good trading
jon
ps: trying out ProRealTime charts for a change
Hmmm . . . looks a bit different to the ShareScope chart Jon. I confess to having had a glass of wine at the time of posting, so apologies in advance if I'm missing something or I'm being a complete ****
Tim.
P.S. I'll update the P&F chart over the weekend.
The story hasn't changed significantly from last week, so I'm going to stick with the comments quoted. However, I confess I am surprised that the current column of bloo 'X's has got as far as it has without retracing and that the 6500 level has got off scott free without being tested - so far!. Suffice to say, last week's 'note to self' is even more pertinent now than it was 7 days ago.If the 7 year high at 6750 is to be breached, the current line of bloo 'X's won't be the column to do it. To reach that level, the current column would comprise 13 'X's and, in so doing, create a triple top. For the index to print a column of 14 or more, would be the equivalent of Jonny Wilkinson kicking a goal from inside his own 22. So, if the 6750 resistance is to be breached, there will, almost certainly, be a pullback column of red 'O's between now and then.
Tim.
(Note to self: prepare for major embarrassment and a slice of humble pie.)