Allied Domecq

[payneg01]

Hi
I've been watching this stock for a couple of weeks. If it can get thro' 450p ish it could be in for a bit of a run. The sector has resistance at 4250 and Mr Schwartz thinks the beverage sector might be shorted in June / July.
All comments welcome.
Good luck
Greg

 

[Skimbleshanks]

What I found particularly interesting in the chart you posted of ALLD was your use of P&F (point and figure) charting.

I don't recall P&F being discussed on these boards before, so I would be very interested to know a little more about them - if you are able to post.

You obviously use them in your TA, and it looks to me as if there has been a P&F breakout, but as I know exceedingly little about P&F I could be hopelessly wrong!

 

[payneg01]

Hi Skim
I'm very new to T&A so do take what I say with a pinch of salt. Like most, I am trying to find my own indicators that I'm happy with, and I do like P&F. (at the moment I don't day trade).
I have to get ready for work, so if you have a quick look at www.charthelp.com or read Three - point reversal method of Point & Figure by Michael L. Burke. If you can't get hold of a copy let me know and I'll loan you mine.
Good luck
Greg

 

[darth trader]

By coincidence I've been looking at P&F Charting too recently. There are some chapters on it in the following books:

Murphy - TA of the Futures Markets
Appel - Winning Market Systems

As you noticed SKim, it is suited towards breakouts. The fiddly bit is how to draw the charts but good charting programs will do this for you.

After that the key point is that only price action (not time).

Good luck.