credibility, page-44

MisterMoon...

I cannot help it if you do not understand what is going on in the chart.

I do not ask you to by the way...I have every right to put it up there however so that those with the appropriate charting experience can ascertain for themselves the relevance...or not!

Why you feel the need to attack me for doing so however...we may never really know?

As for "so many template trend line possibilities"...again relfective of you lack of understanding.

There are primary, secondary and finally minor rise/fall trends, which collectively form numerous nodal points...some more important than others.

Whilst no chart will predict exact stock movements at any given time (this is not what they are for by the ay), they do provide enhanced probability pivot points, where say one action may be expected more than another.

In this regard, when the stock bounced off the 18c line last week, whilst this clearly suggested 20.5c (secondary) and 25c (major) target were in play, the failure to hold above the "minor" trenad line passing through 18c immediately suggested 13.5c was in order.

I have said on numerous ocassions the trading in between the nodes means little...it is a virtual no-mans-land according to my charts...however when the stock trades through, or indeed rejects a specific node, I take notice.

For example, last weeks activity suggests 9c or 16c (minor), or 11.5 or 20.5c (secondary) as the next logical focus. Trading below 13.5c early next week would suggest 9c by the end of the week on high volume, or 11.5c in about 3 weeks on moderate to low volume...but minor nodes usually only transpire in periods of low volatility. I am not expecting this...which leaves the secondary nodes.

The 11.5c node will take about 3 weeks...again, given the current volatilty, I am not expecting this...which leaves only the 20.5c node as a likely result.


Once there we need to reasses once again.


Need to remember, the nodes simply represent mathematical expectations of underlying shifts...from oversupply to under supply...over shoots above or below do not discount the relevance of each...as can bee seen at the recent 22.5c node, where the stock traded higher for a period.

Once again, it was in no-mans-land and given its failure to hold the trend line at 22.5c on the retrace, the lower numbers on the chart came into play.

I could write a paper on the interpretations of these charts...but frankly, can't see why I would when people who cannot understand them (or simply refuse to), wull bag tem anyway!

Cheers!