2013, the adventure begins , page-25

Okay ProjectUlu, so what you're saying is that technicals play second fiddle to fundamentals. You're also suggesting that TA is void with conjecture because it fails to predict share price movements 100% of the time.

Well let me ask you a question. Did any of the fundamental gurus that you speak of, such as Jan, ausheds and omg, predict that the Mt Weld basket price would now be sitting at $37.45?

I didn't think so.

Everyone has an opinion on TA, but few understand the purpose of TA, and even fewer can use it to their advantage to make a profit. I like to describe it to beginners like this. Use FA to find a company that you would like to be a part of, but then use TA to define a good point to enter/exit the stock.

To you, I would like to demonstrate how powerful good TA can be. On 28 January 2011 I was asked by a fellow poster for a chart on LYC. I highlighted the potential for a move towards $2.70. $2.70 is LYC's all time high. Picked it to the cent.

http://img192.imageshack.us/img192/7629/lycjan28.png

On 13 February 2011 I was asked for a follow up chart and I refined my target to $2.65. You'll have to forgive me for short-changing the follow up call by 5c!

http://img145.imageshack.us/img145/2680/lyc1feb13.png

So a chartist can pick the the all time high of a stock to within 5c. I'd like to see one of the FA gurus on here predict the Mt Weld basket price to within 5c!

While everyone was banging their head on the wall saying BUY BUY BUY above $1, I flagged that there was further for the stock to fall. You can read through my posting history to find evidence of this.

For example...

http://hotcopper.com.au/post_threadview.asp?fid=1&tid=1827682&msgno=8512373#8512373

Even with all of this evidence out there to validate TA, chartists are still viewed by tunnel visioned fundamentalists as tea leafers, blind punters and rear vision know nothings. The proof is in the pudding; if you knew a thing or two about TA you would be doing far better out of this stock!

And you know what, who cares if TA didn't predict the hour of day when the TOL was issued or when the capital raising would take place. I didn't see anyone up the FA tree predict the timing of these either! At the end of the day its not about predicting when news will come out, its about trying to get a grasp of what the stock might do, because ultimately that is determines how much profit/loss a trader/investor makes out of the stock.