# Volume-Price-Patterns-Context & Catalysts - Example Charts & Analysis



## tech/a (21 June 2018)

As suggested I will post up charts with analysis to follow.

I search for Volume Control Bars and save them to file. I have 2 searches 
(1) For Today
(5) 5 Days ago so we can look for any patterns.
Most VCB bars have price form an inside bar the next day,this is common 
Strong bars will continue in a day or 2 if there is a catalyst. GFC is an obvious one.
But massive volume will cause a reaction.
So I have a watchlist which constantly changes but each night it takes a couple of minutes to flick through and pull out trade prospects if they appear. Trades I find from eyeballing.

*Rather than use my list* I thought Id throw it over to those interested to chose charts to follow.
Just post up the code and Ill have a look. If it looks promising long or short Ill include it in the list. Only 10 will go in 
Ive put up No 1 MYX as its doing exactly as Explod suggested.

*Im expecting* the gap here to be tested
A quick test and rejection is very weak.
A fill and no rejection is typical consolidation.
A new high is the less likely scenario.

I will up date when time allows but if there is anything of great interest like a trade forming I' ll get on to it.

Unfortunately *I will be away from Aug 2- Sept 22* Living Large!


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## greggles (21 June 2018)

Thanks tech/a. Am following with interest. If I have any questions I'll be sure to ask.


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## tech/a (22 June 2018)

*As There have been no other suggestions and this chart is pretty well marked up.
SHV


*


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## greggles (22 June 2018)

Tech/a, when you get a chance could you please run your eye over Troy Resources (TRY)? I'd be very interested in seeing your interpretation of that chart. Thanks!


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## tech/a (22 June 2018)

Just had a quick look
Just falling back (trading into) a resistance Zone made by the two bars on 21/5-22/5
Its actually in a long term Consolidation. (Daily Bars)
The strongest Control Bar which is yet to be broken to the upside is back at about 15/1
(Weekly Bars).

The chart on my phone is pretty small
Nothing of great interest.


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## greggles (22 June 2018)

tech/a said:


> Just had a quick look
> Just falling back (trading into) a resistance Zone made by the two bars on 21/5-22/5




Thanks tech. Yes, it made two further attempts at breaking through 17c on 25/5 and 28/5 but failed both times. It looks at have support at 13c but can't seem to find any momentum. There will need to be a catalyst such as news or a bullish run in the gold price to get it through that resistance at 17c.


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## tech/a (22 June 2018)

You've pretty well nailed it.


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## lindsayf (22 June 2018)

tech/a said:


> *As There have been no other suggestions and this chart is pretty well marked up.
> SHV
> 
> View attachment 87908
> *



With that high volume absorption bar zone  being tested and now with price above it - I would be thinking that further moves higher would be the most likely scenario.


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## tech/a (22 June 2018)

lindsayf said:


> With that high volume absorption bar zone  being tested and now with price above it - I would be thinking that further moves higher would be the most likely scenario.




That's the way I also see it.
Looking for up bars on low volume.(really low)


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## greggles (22 June 2018)

Tech, do you think this is a volume absorption bar on BID today? I'm liking the way this is looking.


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## tech/a (22 June 2018)

Yes
Any catalyst?


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## greggles (22 June 2018)

tech/a said:


> Yes
> Any catalyst?



The company received a price and volume query from the ASX on the 19th and responded that they have had an increase in clients as a result of their "revitalised sales approach". I posted a screenshot of their response here.

The volume today seems entirely out of character and a few days after the response from the 19th I mentioned, so it's got me a little puzzled.


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## andymac (24 June 2018)

hi tech/a and thankyou for your thread(s) have only just come across them and find the topic very interesting. assume your scans will throw up HSN from friday. catalyst appears to be revised(downward) guidance , would be interested in your process going forward from here. cheers.


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## tech/a (25 June 2018)

Sorry Andy Didn't have a chance to look at this over the weekend (Or anything
for that matter). Ill have a look tonight.


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## tech/a (28 June 2018)

A few Chart updates
*BID* ended up being a top Exhaustion Volume.
*HSN* has a clear catalyst and Chart included.

Ill be in Melbourne Friday through Monday so wont be
able to post up any


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## kid hustlr (28 June 2018)

How do you see ax1 now tech


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## tech/a (28 June 2018)

I posted the above last night--well thought I did
Didnt click Post!

Tonights cha

Kid
The same 
I expect that the zone will act
as support. If not then it will be a blow off top 
O text does see it as a possibility


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## Lone Wolf (28 June 2018)

Tech, AX1 - I think you highlighted the wrong bar?
The Control Bar is the one after the one you highlighted. Or am I misunderstanding something?


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## tech/a (28 June 2018)

I’ve marked it wider for clarity
The box would cover the bar


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## tech/a (2 July 2018)

Lone Wolf said:


> Tech, AX1 - I think you highlighted the wrong bar?
> The Control Bar is the one after the one you highlighted. Or am I misunderstanding something?




I just had a chance to have a good look.

You are correct L/W
I've altered the chart to reflect the correct marking.
It still doesn't alter the analysis.
But lows were tested and supply absorbed back to the
volume control area.

This is looking like distribution.
The majority of *Closes* within 7c range
$1.55 to $1.62c


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## Lone Wolf (2 July 2018)

tech/a said:


> I just had a chance to have a good look.
> 
> You are correct L/W
> I've altered the chart to reflect the correct marking.
> ...




Thanks Tech, good to know I'm not completely losing the plot.
On that chart (AX1),the second highest volume bar on the chart happened to cover almost exactly the same area. Does this repetition of volume being traded in the same area add anything to the picture?


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## tech/a (3 July 2018)

Yes your ahead of me a bit.
At 5he time of that bar printing it would have been the 
VCB in control until the next bar highlighted printed.
I see this as a strong zone.
The spike down happened on lowish volume ——
Watching closely as the next few days will likely show this
Is distribution.


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## greggles (3 July 2018)

@tech/a - I'm interested in what long periods of consolidation can tell us. I know you're familiar with Silver Lake Resources and I noticed that have spent longer than a month consolidating between 55c and 60c. Is consolidation just buyers meeting sellers equally and keeping the price within a narrow band? The volume here has been quite good, so are there are signals that tell us when buyers are overcoming sellers and vice versa? Also, does consolidation create support and resistance? (i.e. is the current price action creating resistance at 60c)


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## tinhat (3 July 2018)

This discussion is very informative. Thanks.


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## tech/a (4 July 2018)

greggles said:


> Also, does consolidation create support and resistance? (i.e. is the current price action creating resistance at 60c)




Consolidation has a life of its own.
(1) Width
(2) Breadth
(3) Closes
(4) Volume characteristics

All very important and all very necessary in our effort to read what charts are saying to us.
Certainly part of the topic I would like to cover and discuss.* In answer*--A broader more consolidated, Consolidation tends to act as support or resistance. Where smaller consolidation/patterns can have little or no effect. 


*Time is flying* (Away for 2 mths in August/Sept) and there is so much happening on the charts I've suggested we look at,that I'm not getting to update and continue the main thread.
Ill comment on most of the charts tonight then continue with the original discussion.
Lots to cover.


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## tech/a (4 July 2018)




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## tech/a (7 July 2018)

We are currently charting AX1,MYX,SLR,SHV,BID,HSN,ISY

These charts are presented with commentary to show what I see and how I would progress with the IF I had them on a watch list and decided to keep them for an opportunity.
I'm for ever culling my own and do not comment on the charts only placing arrows and Zones of interest.

Here are 6 of those charts.
I will only comment in the future if something happens in the chart.
If you see something before I do---please post away!


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## tech/a (7 July 2018)

*EXERCISE
*
*Looking at the group of bars **highlighted** in RED*


*

*
*
*


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## Cam019 (7 July 2018)

Monday's bar broke through and closed inside the resistance zone on high volume. We then have three consecutive gap ups with Thursdays bar closing outside the resistance zone, signalling strength. Volume was 1/3 - 1/2 of Mondays volume during each of the three gap up days, indicating supply withdrawing. Friday saw a down bar closing off the days low inside the resistance zone, with price closing the top two gaps. Volume drying up. A good sign. Ideally, we'd like to see the first gap held with a narrow range, low volume down bar. A nice little continuation pattern with a low risk entry. Additionally, no over head resistance with a break over 4.23, but could see some profit taking from short term traders.


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## myrtie100 (7 July 2018)

Here's my take


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## lindsayf (8 July 2018)

tech/a said:


> *EXERCISE
> *
> *Looking at the group of bars **highlighted** in RED*
> 
> ...



The push up above the vcb looks like it is just price looking for the liquidity from the stops above the highs to the left. I would not be surprised now to see price fall right through the vcb zone.


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## greggles (8 July 2018)

tech/a said:


> *EXERCISE
> *
> *Looking at the group of bars **highlighted** in RED*




Friday's price action was profit taking on low volume after the bullish move out of the consolidation zone earlier in the week. After four days of higher highs and higher lows, profit takers have moved in and supply has overcome demand. On Monday I think we'll see another low volume day ranging between $4.08 and $4.20.


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## tech/a (9 July 2018)

*EXERCISE
*
Ive posted my thoughts using a Weekly chart to show
a different and hopefully clearer look.
AD8

The daily chart clearly shows a very weak break out from the consolidation.
Without stronger volume on a daily break this is likely to just revert to the
consolidation area.

The good news is that Friday was an extremely low volume day with a little range 
someone was happy to chase a lower price. 
A quick break on volume will see higher prices.
Reversion back to the pattern will see more distribution or accumulation. (The future will tell which).
If I was holding today could be a decision day. If price hardly moves then I would have to wait!

$4.05 out
$4.24 + hold
In between wait. It will become clear.
*

*


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## greggles (9 July 2018)

greggles said:


> On Monday I think we'll see another low volume day ranging between $4.08 and $4.20.




Well, I was mostly right. I set the lower end of the daily range a little low because I thought that there would still be an excess of supply at or near the open and the bounce would come later in the day. It ended up being a tighter range than I thought.


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## just_jay (11 July 2018)

tech,

Do you have any advice on maintaining a watchlist? It takes me 10 times as long to scan a chart now using VSA and my daily scans of 300 odd charts are going to be near impossible to maintain.

Do you use a screener, or do you do a manual scan of indices you trade?


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## tech/a (12 July 2018)

Firstly what are you scanning for
What is your criteria??

REMEMBER
VSA individual bars are only indications of future price action.For me unless the chart is showing me a strong reason why it’s likely to trade in my direction
COMBINED with a chart which tells a positive story supporting my chart in the watchlist—-such as pattern and or Context and or Catalyst and or very clear signs of supply withdrawing or coming in —- a chart with only one criteria met will very rarely make a watchlist.

Then once you have a prospect and in a watch list
I download data each night open the folder with my watch list and flick through the charts
Those that have destroyed a pattern or broken down from the principals I know to be valid in a setup for a trade I discard.
I’m pretty brutal and most will show within a week,discarded/watching or trading.

I flick through the scans after this.
Here I’m looking for the characteristics I need to see to place either a trade or in the watchlist
While they maybe ok from the scan they won’t make the visual scan.

I generally have up to 50 in my list.
There are many days when I don’t up date the list
Just too busy.
So I miss a lot.
I do however keep right on those being traded.
Even then I’ve been caught—both in a bad and costly way and a nice surprising winning way when in meetings or on sites.

Lots to add to this thread bear with me I’ll do as much as I can with time available.
One good suggestion is a glossary of terms.
Will get there!


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## statmech71 (12 July 2018)

Thanks for the detailed explanations Tech - fantastic thread


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## bngood (12 July 2018)

I am wondering if NAN has shown enough range to consider this to be a control bar.
Long consolidation.  Has formed a wedge.


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## tech/a (12 July 2018)

Please see chart mark up.


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## bngood (12 July 2018)

tech/a said:


> Please see chart mark up.




Thanks, tech/a that is great! 
I didn't know about including the gap.  It is an interesting method.
3.14/3.15 seems to be a sticking point (resistance/support) for NAN.
Let's see if today's action can take it above there.


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## scholesy (12 July 2018)

Hi tech/a, great thred! What are your interpretaton for the charts on the stocks NCZ, RCL and ACF?


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## tech/a (12 July 2018)

Have a go at reading them
Post here and then Ill comment.
Other wise you learn nothing!!!


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## just_jay (12 July 2018)

tech/a said:


> Firstly what are you scanning for
> What is your criteria??
> 
> !




I generally do a massive scan once a month (D/W timeframe) on the major indices (Aus, US, UK and Nikkei). That's like a good 2000-3000 charts. I then pick out/ flag the ones that are trending up at all time highs or near all time highs, some that are ranging, and others that are at major S/R. I reject those that have peaks/ troughs of more than 15%. I like a smoothish equity curve.

This usually brings the list down to 300-400 charts, which I then go through every 2-3 days and narrow it down to 50-100 charts. I used to look for breakout of ranges or pushes through resistance on higher volume, or a close over my defined EMA on strong volume after a retracement. I then eyeball these 50-100 charts everyday, and if the general market sentiment is ideal (I have a bunch of rules I defined), then I take the trade if it presents itself.

Now, with the application of VSA, I am looking at the aforementioned 300-400 charts, and I look for abnormal volume (either very high, high or low), the spread of the candle (how wide and where it closed) and where the action is taking place. It can take me a few mins to work out whether there is accumulation or distribution from the market professionals. It takes longer if there are a lot of very high volume candles and usually I reject these because I get confused. That's the general idea of how I manage my watchlist.

I'll try and be more discerning when I do my bi-weekly scans and include an additional criteria for making the final watchlist. And no. I havent worked out what it is yet. I'll figure it out once I start looking at more charts and reviewing the mark ups I've made on the charts. Many thanks for your perspective.


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## bngood (15 July 2018)

Here is another one that I think fits the criteria. 
IMC.  It will be interesting to see if it respects the support line.
I have always thought that the best indicators are ones that lots of people are using so that lots of people respect them.  I guess volume indicates lots of people. 

Is this system used to buy and sell or do you still stick to your usual buy/sell plan and just use this to confirm?


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## bngood (15 July 2018)

Here is the latest NAN. It broke out above the box and has closed above it for 2 days. 
It has already tested the box but I am not sure if it has to test and hold above the box.


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## tech/a (15 July 2018)

Bngood
You have bought up some vital questions
Both general and specific.
I’ll be able to spend the nesessary time to
Answer later in the day


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## tech/a (15 July 2018)

Ive answered in the main thread as this is for Charts and examples.


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## tech/a (15 July 2018)

bngood said:


> Here is the latest NAN. It broke out above the box and has closed above it for 2 days.
> It has already tested the box but I am not sure if it has to test and hold above the box.
> View attachment 88371




NAN is certainly conforming to support within the V/C bar zone.
But the lack of volume is currently indicating a continuation of ranging.
I read this as a test of the recent high.
Of course a thrust through the high on volume will change the chart scape. 

We must also look at the chart in context 



IMC is similar but with its own twist


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## tech/a (15 July 2018)

As an Exercise 


Im trading this what would you be doing
given the charting analysis.
It was originally in my watchlist for the pattern
after picking up the V/Bar.
The very low volume caught my eye in the retracement
of the V/C bar that pretty well ALWAYS happens and again
in the second pattern (Relative to the volume in the Bars
immediately before them).


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## Country Lad (15 July 2018)

tech/a said:


> As an Exercise........
> ........what would you be doing given the charting analysis.



 tech, you may remember having lunch at our place in Cairns many years ago where you tried to convince me I am eminently suited to go deeper into the technicalities of charting.  Well I tried, and it was all too hard and complicated so I have stuck to the very simple system I have explained elsewhere here.

As you have said before, to each his own.

What have I done with this one?  Buying it now & then as it breaks at these points along with strong momentum and some other indicators.

Sorry, not meaning to hijack your thread


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## tech/a (15 July 2018)

Nothing wrong with Point and Figure 
When you get a chart like the one you
Have attached it’s very simple 

Great for breakouts 
But try to read anything else 
And it’s of little value 

Yes I do remember that drink
To far between my friend!


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## Country Lad (15 July 2018)

tech/a said:


> But try to read anything else
> And it’s of little value




No, no there is far more to P&F than just breakouts but that is another topic for another day.


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## bngood (15 July 2018)

tech/a said:


> As an Exercise
> 
> 
> Im trading this what would you be doing
> ...




What is it tech/a?

I'm not good/familiar enough at the technique to analyse it.


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## lindsayf (15 July 2018)

tech/a said:


> As an Exercise
> 
> 
> Im trading this what would you be doing
> ...



I’m thinking you might be thinking of pyramiding.
You could move your stop on the original buy to underneath the new vcb?


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## tech/a (16 July 2018)

lindsayf said:


> I’m thinking you might be thinking of pyramiding.
> You could move your stop on the original buy to underneath the new vcb?




Well done having a go.
While I could do that I would be giving back too much open profit.
There are some characteristics in this move not seen in the 3 prior forward moves.
Subtle but there.

This is what I'm going to do.


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## tech/a (16 July 2018)

A couple more very different each





Catalyst
https://stocknessmonster.com/announcements/rva.asx-2A1091736/


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## just_jay (17 July 2018)

NEA
Prior to reading announcement on 10/07 - Volume on last 4 bars higher than avg, and price is ranging. Due to price being at all time highs, I am thinking that this is distributing now rather than sellers being absorbed.
After reading the announcement - I am thinking accumulation now, in preparation for the FY2018 results on 22 August.

RVA
So price is being suppressed during accumulation. In such an example, would you buy at end of day on the 16/07 and set S/L at 19-20c, or wait to see how price reacts the day after?


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## tech/a (18 July 2018)

Another worth looking at

Joel
RVA is far to sparsely traded for me
NEA is in accumulation I think.


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## just_jay (18 July 2018)

tech/a said:


> Another worth looking at
> 
> View attachment 88424




tech, you drew the trading range s/r box based on the vcb on 02/07, and not the 29/06, where volume was extreme. Why's that?


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## tech/a (19 July 2018)

Error
Thanks for pointing that out 
I’ll alter the chart.


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## tech/a (21 July 2018)

A few more charts setting up.


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## tech/a (28 July 2018)

Greetings
These will be my last posts on this thread before we wander 
around the planet for a couple of months. Italy UK and Singapore.

Below are the trades I'm currently in I've marked up some so you can see
how the trades happened out of my watch lists. Others you'll see pretty
clearly even if not marked. Ill be closing all on Wednesday as we fly out
Thursday and no charts no trading---holiday! 

I've been buoyed by the number of people in some of the Stock Threads
who have seen a lot of what I see and have been able to identify opportunity.
There has been some great discussion BEFORE things happened.


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## greggles (28 July 2018)

tech/a said:


> Greetings
> These will be my last posts on this thread before we wander
> around the planet for a couple of months. Italy UK and Singapore.




Have a great trip tech/a and thanks for your efforts with both "Volume-Price-Patterns-Context & Catalysts" threads! I have found them very educational and I'm grateful for the time you have spent putting it all together.

I hope that after your return you can think of other aspects of technical analysis worth sharing that you have learned over the years. These two threads have become very useful resources.


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## tech/a (1 August 2018)

A couple to leave you with 

Arrivederci


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## Joe Blow (1 August 2018)

tech/a said:


> A couple to leave you with
> 
> Arrivederci




Safe travels! Have a great time on your trip. See you when you get back.


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## tech/a (1 August 2018)

Cheers Joe 
Off to live LARGE


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## tech/a (27 December 2018)

Just kicking this up now I’ve found it for comment when I have time


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## tech/a (28 December 2018)

Decided to do a new thread.

*Tech/a on technical analysis.*
Inspired by Skate.


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