Hi Tony
I stumbled upon PNF last week, following which i discovered this forum thread. I have been doing some reading up, and your detailed insights here have been most helpful.
As my first attempt, I tried applying these to Ashapura Minechem. My observations are below, would appreciate your comments and insights.
On PNF, its in O column, Sell mode. It seems to have turned around sharply today, which will likely put it in X column tomorrow (if it crosses 66), though still in Sell. Resistance at 74 and 86, support at 58,57,56. It will go into buy mode only on crossing 76 (after moving 1 box above the resistance of 74). It violated the bullish support line sometime in July. And after the high of 86 in Sept, it has been forming lower high and lower lows.
On candlestick, RSI climbed out of oversold territory today (from around 15 to 37). So did CCI (from -162 to -78).
However, it is still trading below 50,100,200 day EMAs. In fact, 50 d EMA crossed below 100 D EMA about a week ago. Though over the last 12 months, 200D EMA has acted as a strong support.
Are my observations on charts correct ? Assuming these are correct, what can I interpret ? Can I say that as RSI/CCI have started moving up, one can buy once price climbs over 200D ema ? Or, is the price breaking through the PNF resistance of 74 a better time to buy ? One other valid interpretation also seems to be that the prudent time to consider buying would be when the lower high/lower low pattern is reversed convincingly.
On the other hand, if one was already invested, lets say it fails to build on todays gain, stays in O column and say starts falling to next support level of 58. Would technicals indicate time to exit ?
Thanks in advance,
-Satish