chartists are share psychics nothin more!!, page-27

Tibbs .... A lot of people may simply dismiss your post and carry on .... but there is a lot of value there, so well done.

It kind of a amuses me that a lot of "technical analysts" talk about a chart like it is a living breathing beast !! (wrong)

As you state ... A chart is simply a visual representation of the preceding price action ... nothing more.

Like a lot of traders, I use technical analysis as a gauge of momentum etc etc ... but some stocks in their early stages of "development" should be gauged more on their fundamental potential ..... and if that potential stacks up, and the risk can be proven negligible .... then "put the house on it"

When dealing with T/A, it is important to remember the various components a chart is actually displaying

Who is buying ...

1) Long term believers vs Day traders/swing traders/ etc

2) Large Institutional buyers or Retailers etc etc


Who is selling ....

See above

MORE IMPORTANTLY, from a fundamental point of view, we should try and discern ....

WHO is ACCUMULATING !!


Depending on the general market sentiment, the above traders/investors situations also vary, so constant review is required to get it right ....

A chart needs to be read in "Context" with all the other variables associated at the time ......

PEN is no different in that respect, and to gauge PEN's performance dynamically ... we should be gaging it in relation to the myriad of other stocks on the ASX and see how it is doing!!

How is it doing?? ........ Pretty damned good from where I'm sitting !!

Cheers.