TA Perspective, page-48

I have been studying the 1PG chart today and I have decided that if Friday was not a low then I will walk backwards from Brisbane to the Gold Coast with no pants on. There was something about the spiky look of the highs and lows of the chart that prompted me to have a closer look at time. If anyone has been around HC long enough you may remember a poster called Yogi_in_Oz (God rest his soul) who maintained that chartists only really ever considered half the chart (price) and ignored the other half (time). Some of his stuff seemed really weird to me at first but he had an uncanny strike rate so I went from being a scoffer to disciple.

We happily apply fib lines to price but we would not think to do so with time....but why not?? A stock chart has an x axis which is as much a part of the chart as the y axis which contains price information. The max error that the 1PG chart has in any of these ratios is one day. 1 day in a 295 day time frame represents an error of 0.34%.

This type of analysis cannot tell us whether Friday was THE low or whether it will just be the start of a three day counter rally or whether it will be something in between. We will just have to wait and see.