MY CHARTING APPROACH

CHARTING STYLE AND TOOLBOX

My charting style I think can be described as clean, to the point and educational. I use the methods and tools I have realized from experience works the best for me.

My main toolbox includes technical analysis, bressert cycles, fibonacci and weinstein stage analysis. To help identify turns I also use ratio charts plus look for e.g. false breakouts, overthrows and undercut lows. In addition I have some tools developed from experience that you will catch up on as we go along, named e.g. around the apex move and rounded bottom kickdown. Same with cycles theory and its terms, it will get clearer as we go along. And since all technical analysis starts with getting the larger trend right, I also use long macro cycles like the 54 year Kondratieff wave, 18 year debt/real estate cycle and 15 year commodities cycle.

Classical technical analysis is basicly done by looking for support, resistance and patterns plus observing volume, and it is a hunt for the most valid patterns, trend lines et c. Cycles analysis is done by methodically working with cycle parameters plus by having a feel for the present price action, and it is a hunt for major turns in the form of cycle lows and cycle highs.



CHARTING EXAMPLE -  How I catch the big trending moves when they start

In this section we have to get a bit more technical so the two charts below are not stripped down for this website. But, just look at the general idea with each chart here now, and then things will fall more and more into place once you see me using these tools. I try to keep it clean, clear and educational, plus only include what is relevant.

So how does one catch the big trending moves when they start? Well, my very long term chart below for the all-important base metal copper can illustrate this. Here I am combining traditional technical analysis with cycles analysis, plus also the long term 15 year commodities cycle. With these tools combined we catch the big moves very early. Look at the fit between price movement versus the blue pattern plus also versus the gray cycles bottoms.

And also, note that this chart has broken out above my large 11 year blue triangle, and is now backtesting that huge pattern from above, meaning that the breakout is holding. This also means that the most important base metal, copper, has now confirmed the new bull market in commodities.

  

CHARTING EXAMPLE - How I find the strongest, most promising setups

And, what about setups for individual companies? How does one find the strongest, most promising setups? Well, my chart below for a high quality silver company can illustrate this. I will not explain the whole setup here on the website as it would become too technical I think. But study this setup as it is a picture perfect, textbook quality setup. In short, it has a large blue basing pattern that broke out and moved strongly with added support from many perfectly set up parameters.

As said, do not focus on what you do not yet understand with the chart below, focus on the overall message the chart is telling us, and that is that the circumstances were just right for a fantastic move out of that blue basing pattern. This was great gains if one was trading, and it is also still a great hold if one was investing for the longer term. And also note, the chart below is a weekly chart (one bar equals one week), but these tools and techniques work just as good on all time frames, e.g. daily charts.


The combination of technical analysis and cycles analysis is really a match made in heaven. And then adding a few other very useful techniques, makes the end result even better. While many are forced to just guessing if big moves have started, using cycles analysis together with traditional technical analysis often gives you the roadmap.