1. A computer implemented method for recognizing and forming shapes presented on a display screen of a computer system, the method comprising the steps of: receiving at least one incoming stroke drawn with a pointer on a display screeni creating a live group including the at least one incoming stroke; characterizing shape sides from said live group, as one of the group consisting of straight shape sides and curved shape sides; characterizing the live group as a polygon and generating a polygon from angles and vertex points between said sides if all of said shape sides are straight shape sides; characterizing the live group as an ellipse and generating an ellipse by fitting the live group to a five parameter description of an ellipse if all of said shape sides are curved shape sides; characterizing the live group as a composite curve from said shape sides if at least one of said shape sides is straight and at least one other of said shape sides is curved; and redrawing the live group on the display screen as a polygon, ellipse, or composite curve as generated or characterized in one of the three preceding steps.