No. of Recommendations: 2
Andy,

Good question.

Yes, when applied to the Simon Sez technique only. Otherwise, they are just background information that traders/investors see but don't use them and sometimes don't know what to do with them.

Also, for some of us, it is a sign to say "be advised that the stock is about to fall or rise."

The Label or Flags are posted on the TOS charts. 99% of the time we react to Buy or Sell signal buying or selling.

If they are in your way, you can edit them out at the bottom of the chart where it says Price Labels and uncheck the box.

"The Price Labels checkbox adds data labels at significant peaks and troughs on the chart that tell you the high and low price data for each of those points."

If done, don't forget to save the chart.

Quill -

The following was written back in 2000 Mailbag.

Chip Anderson writes after a question was asked about Labels

Q: The Price Labels that appear on your charts seem to be one day late for buying signals. Can you move them up one day please?

A: First off -- do NOT use Price Labels as trading signals. They are not intended for that purpose.

The Price Labels are based on a calculation that looks "ahead" in time. They are similar to the Zig Zag indicator in that regard. While it looks like they have given good signals in the past, that is because we "cheat" and look into the future when deciding where to draw them. These are qualities that rule price labels and the Zig Zag out for use in a buy/sell trading system. Price Labels are provided to give you the exact values at which major reversals occurred so you don't need to look those values up in a data table somewhere.

- Chip Anderson


Using Zig Zag.
http://stockcharts.com/h-sc/ui?s=BOIL&p=D&yr=0&m...

More noise on a chart that I don't use.
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