september week 3

Hi fellow chartists, I thought I would open the batting on our weekly thread with a post that tries to encourage others to share how they use TA to actually enter, monitor and exit trades.

So I intend to share some pitchfork stuff on PDN that T91, KookeBoy & Adventra have posted on w/end charting. Sorry if repetitive & a bit �obvious� for some.

Is the trend your friend?

Firstly, for fun lets look at pdn longer term & just highlight the types of return that a share like pdn has been delivering. This chart highlights to me how valuable technical analysis is and perhaps how useless fundamental analysis (FA) would have been over the 5 years shown at predicting movements.

My hypothesis is that FA of pdn and more generally of uranium has not changed a lot in the time frame shown. It became an energy source of interest in the last decade and it remains in that position. It in no way predicted or predicts the amazing sp movements of a share like pdn. So I have for a long time believed that FA protagonists know sweet FA about potential share price movements.; LOL

Simple (or not so simple as I am learning!!) trend analysis could apparently lead to unbelievable returns shown on the chart.



So close up of that pdn chart with some notes on the chart:



Pitchforks for trading

Add some pitchforks 2 of the most obvious ones shown; green uptrend u/t and red down trend (d/t). ahhh some order me thinks. Not only order but T91 has taught us that when we see that test retest pattern there is a high probability of price moving to med tine. So we have a real trade potential right here with one p/f likely to be proved correct. More notes on chart.

So lets assume it moves north and breaks red res at $3.88, potential trade is:

Entry say $3.90
Target = $4.59 ; 69c = 17.7%
Risk = $3.78; 12c = 3.1%
R/R = 6.5



So my request is to see some other setups from chartists. (I hope not to presumptuous?)

PS 1 also notice todays action was a type of bullish Harami for those who follow such things. Check here if interested http://www.candlesticker.com/Cs29.asp

PS2; after 12 months of TA study it is this pitchfork Retest pattern on a previously drawn pitchfork that I think I am most confident at adopting as a future basis for trade entries.
Gj