Ten charts that prove Technical Analyis is valid and PATTERNS exist and give you an EDGE
CLIFF NOTES: in Mark Douglas’s amazing work, on page 132 of Chapter 8 he defines an edge as “nothing more than an indication of a higher probability of one thing happening over another.” My edge is pattern recognition based on square roots and the inverse of those square roots. As my friend and mentor Larry Pesavento (www.tradingtutor.com) said “defy the human condition and do the work.” If you spend as much time as I have in front of charts you’l find that in the midst of the chaos there is patterns that appear and they give you an edge.
My exemplar below is, simply, silver and the PATTERN that existed from $8.00 to 50 and then back down and the PATTERN that is now coming into play at/around 14. What does this mean? Well, see above – it mean it’s an edge and it might hold and, then again, it might not.
All of these charts are real time w/ ZERO “could of, would of, should of” … the PATTERNS work, technical analysis works and get ready to rumble at 14/oz.
ROCK ON, ok?
ONE: note the red line – EXACT same corrective move DOWN into 8/oz
TWO: I like the symmetry, I like the mirror image fold back and I LOVE the EXPLOSIVE MOVE UP back in the past – BUY at 8
THREE: here we go … NOBODY BELIEVED ME WHEN I SAID GET IN FOR A POTENTIAL $50 dollar targetFOUR: the geometry at the top that was completing the foldback pattern from the past – time to shortFIVE: symetry and measured moves complete – sure looks like falling off a cliff on the other side of the foldback
SIX: the game plan of the correction unfoldingSEVEN: 3 waves up complete – looks like a FLAT CORRECTION – here comes CEIGHT: triangle 4 then a plunge into the 14 area seems like a PROBABILITYNINE: continued look at the potential for the fall into the 14TEN: Silver as of 05/29/2014
BART is a CMT and an expert a "advanced" pattern recognition used w/in the intermarket analysis discipline. He's also an accomplished Business Development Executive providing solutions to a myriad of business markets.
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