weekend charting 26/27 february, page-124

Hi Lok

"Firstly - would charting have been able to give guidance on the high of the 2007 rise prior to the event?"

the charts through candles, indicators or prior resistance, support do give excellent guidance to highs and lows prior to events. Looking at EGO from the 26 july 07 it gives a very clear signal of a break out and upward trend.

Using previous support and resistance can give us entry and exit points. Referring to EGO chart July 2002- Aug 2001 and Junes gap would have been my next resistance to watch. It never reached that so my stop loss would have been triggered.


"Secondly - I see the 2007 rise being a key formation of 2011 predictions. Would it be true that the further away (in time) the past rise is, the less probability of being correct in using it for future rises"


Not necessarily Lok, the Andrews pitch fork for instance is very accurate with trends and the further away in time imo, can be a benefit, same as a 3 month chart using candles and trend lines or a 1 month chart incorporating swings. I think each chart suits itself to specifically what the chartist is highlighting or predicting through historical data to occur. and you use the available indicators to give you the idications of valid entry, exit points. Etc.