For those of you who like patterns (and let's be honest, most of...

For those of you who like patterns (and let's be honest, most of us will bring up a chart to identify at least an up or down pattern called a trend) then the THR chart actually presents a nice pattern, which has a sense of predictability to it.

If you analyse the first breakout, you will notice that from the first candle, there are 17 bars before the long candle from $0.028-$0.04 which constitutes the start of the next leg as it breaks out to a new high.

The consolidation during "up wave 2" has followed a fairly similar pattern to "up wave 1" (for the sake of identifying the movements).

Todays move is similar to the 9th bar in the first up wave, which suggest tomorrow may see another intra-day high but a lower close, followed by another week of consolidation before the next move up.

Despite the fact that the DFS is "close", the fact is that these things often take longer than expected (as has already been covered).

If the chart can only tell you one thing with some degree of certainty, then cyclical behaviour suggests that further consolidation is likely to place prior to the next breakout.

It's very rare that you will come across a textbook situation like this. Nothing is guaranteed but I would be looking closely at the time between each move - although I don't really follow this sort of analysis, I couldn't help but notice that a wave pattern appeared to be playing out.

Still holding and was lucky enough to accumulate a small addition today. Keep up the great posting.

Marchello