Hi Dave

Thanks for your last reply.
And also thanks to Brian for sharing your thoughts too.
I thought I'd load another chart of PDN current as of 9th May 08.



Can you add some educational input on what the chart is doing now?
The chart is a slight fuzzy i'm assuming to the uploading method so if anyone hasn't got a zoom function on their PC then just to let you know the last Three days were all up days.
I'm assuming the original observation about the double bottom formation is close to being correct or would you say its correct at this point?
In your last reply you mention about the Setup. Did you mean that the price once fallen below the bottom line would test that line and from a trading point of view would be the confirmation of the setup indicating to go Short at that point. if that is correct then i;m assuming some folks who know these movements went short on it to ccause it to fall to a lower level to which it did which gives us more of a defined image of the double bottom to which the Shorts were then closed hence it then rallying up as it has done.
Funnily enough i read an article a couple days ago how PDN has been one of the biggest shorted socks on the ASX for some time now. On that note whats your educational view on Shorting as apposed to going Long is there a general consensus that one is better for profits than the other. Is shorting a much quicker way to make profits?

couple of educational view questions.

From an educational purpose when it comes to drawing lines to form triangles and such on a chart, is there a rule of thumb of it being only for candlestick charts and also when it appears that you could draw many differnent angles what is the common criteria that makes the most sense to draw lines through for ultra accuracy please, such as should a top line for instance be running accross the top of 3 or more candles over time in perfect line?


Also on another unrealted note to PDN can you elaborate please on your thoughts on GAPS or point me towards some worthy info?
I always see people making comment on things like ( the stock will retrace now as it has to fill the gap). From my own observations i notice gaps on everything left right and centre on all stocks all the time and am wondering if GAPS actually do play any solid fact that they need to be filled.
and if gaps indeed end up being filled would one be correct in interpreting that happening that the stock is being manipulated by someone deliberately or at leeast to the point where serious traders are atemptin to control its movement? I realise its a bit of a far fetched question especially on a stock that has massive frequent volumes on it.

I hope i'm not wasting your time with my questions.
I'm only using PDN as an example for educational purposes myself due to its chart being clear and volumes large enough for my own clarity purposes.
once again thanks in advance for your time and info you provide.
My aim is to one day be in full control of everything I've been learning from you and your website.

sincerely
Jim