First of all, the TOUCH command gets the touch information in the order of STTM (Time the touch screen has been continuously touched), TX and TY (The coordinates of the touch itself).
So you'd want your TOUCH command to look like TOUCH ST,X,Y.
Secondly, the LOCATE command only works to relocate the cursor position on the console screen. The console screen is usually only 50 characters wide and 30 characters tall, which is way less than the numbers usually returned by the TOUCH command.
In this case you would either want to use the MOD operator (not recommended for beginners) or the GPUTCHR command.
The GPUTCHR command works on the graphics screen, which size is the entire active screen in pixels (400 width and 240 height if using the top screen). The basic parameters for GPUTCHR are the coordinates of where to draw the string and the string itself, so you'd want your GPUTCHR command to look like this...
GPUTCHR X,Y,"->"
You can clear the graphics screen with the GCLS command.