Drillsearch - Chart discussion 23 May 2015, page-7

All good Barney and I agree to a point. The prospect of corporate action makes the chart less useful.

By predicting (and showing) that channel repeat with the same gradient I was pointing out that past price action is often a guide to future price action. It just 'is' and to me it is really a function of the same market participants being involved in the stock.

If you look at some of the past videos I put up I use relatively simple trading strategies such as double bottoms, and successfully traded the double bottom from 75 cents to $1 in DLS. The double bottom does have statistics that back it as a reliable chart pattern as do a few others such as a 'head and shoulders top'.

I don't use technical analysis in isolation but as a tool for entries/exits into quality fundamental companies. It is essential for resource investing in my opinion.

Cheers