observations on price movement

Greetings all,

I am not making any predictions regarding BRM's share price, given that it is clearly subject to regular and deliberate manipulation (in my opinion), but I thought it would be interesting to highlight a few observations.

I have attached a clickable chart containing an Andrew's Pitchfork (in blue) that I first drew back in mid-November 2010 and have been updateing ever since. It remains a valid descriptor of BRM's overall price movement, as far as I am concerned. The chart contains the original blue pitchfork with a series of parallel blue 'warning' lines, spaced at the same distance as half the pitchfork's width. I have also shown similarly spaced green lines representing the corresponding 0.382 Fibonacci divisions between them.



Despite the obvious price manipulation over the last seven months, and particularly since the high on 6 April this year, note that price has reacted in some discernable way on reaching each of the blue or green lines, usually with a traditional test/retest scenario that I have observed and described in previous posts, during its fall to the low of $2.50 on 28 June.

Now that price is once more moving upwards, it seems that it is still observing this same pattern of 'reacting to' these same lines, with the same test/retest scenarios. I am not talking about approximations here, but about exact touches on these lines by a number of the opening and closing prices, or intra-day highs and lows - almost as if the price is moving along and up these lines.

Since the lines exist only on my chart, because I have drawn them there, this behaviour begs the question - "To what extent does price movement, even when heavily manipulated, conform to a predictable pattern." If price reacts in similar fashion on reaching my next green line (around $3.99 / $4.00) and the next blue line beyond that, then I will be even more convinced of the predictable objectives and methodology behind bot trading. If you can understand it, you can exploit it.

Just for interest..

Regards,
Bones