multi year chart update in hurst envelopes

Hi friends,

This is a chart update of POH over the last 3 years in the curvilinear Hurst Bands or envelopes. This chart update has been posted in fulfilment of an email request by a fellow trader in Hotcopper last week. This chart has been posted to the Charts forum and NOT the ASX by stock forum of POH where I do not participate in anymore owning to well known reasons amongst the customary POH forumers of Hotcopper.



Observations from the Chart:
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1. We are still in the developing time period for the multi year massive W pattern and the Cup with a handle pattern. These massive patterns of profit take a long time to form, and patience is required for those long term believers of these chart patterns. Please refer to my previous posts for POH to review these patterns and details eg outbreak levels, if you are interested. There will be no massive profit targets until these long term patterns are fully formed and their outbreak levels tested successfully.

2. The prices of POH can be encased within two curvilinear equidistant Hurst bands or envelopes, the inner band representing shorter term supports and resistances (targets), and the outer band, representing the longer term resistances and supports.

3. Prices tend to move upwards or rebound, when prices fall to the lower bound of the inner envelope, and to retrace or pullback after hitting the upper band of the inner envelope. In some cases, prices move upwards past the upper band of the inner envelope to touch the upper band of the OUTER envelope where it then pulls back in a correction.

4.We are currently close to hitting the upper bound of the inner band or envelope, marked 1st resistance. If prices move beyond this 1st resistance, the next resistance or target is the upper bound of the outer band or envelope. You can read the price levels of these resistances from off the chart to keep a close watch on your prices.

5. Prices have never fallen to the lower bound of the outer envelope marked 2nd support in the past 3 years. It is therefore a reasonable educated guess that prices are not expected to fall to the 2nd support level marked as a matter of future projection.

6. The short term swing trader would have done reasonably well if he had enter whenever prices fall to the lower bound of the inner envelope and sell when prices touch the upper bound of the inner envelope or the upper bound of the outer envelope ie. in other words, trade the EDGE BAND signals.

7. Both inner and outer Hurst bands indicate a general tendency for an uptrend move longer term, although in the short term, prices are nearing the upper bound of the inner envelope and may face the 1st resistance level soon.

8. I have avoided showing the cycles of POH following the cycle forecasting model, because the cycles of POH are currently unstable and not amenable or accurate for forecasting.

Hope this chart update is useful to the person who has requested it, and may the best prices be to all who are trading POH.

Cheers,

dascore