Charts only describe what happened in the past. The use of charts
for the future cannot take into consideration all those
incomputable variables in the stock game, and, especially,
in the penny stock game. There are: human behavioral
tendencies (emotional outbursts, fear, enthusiasm, etc),
panic selling/buying, buyout possibilities/offers, market
makers' manipulation (short covering, etc.), company
information/misinformation, false/correct PRs, lack of PRs,
too many PRs, fluff PRs, false/correct financials,
audited/unaudited financials, pumping, dumping and bashing,
dilution, etc., etc. We cannot handle that many absolutely
complicated variables in any possible applicable
modeling/statistical adventure. We might be able to predict
where a hurricane is going to hit land three days from now,
but not the future behavior of a penny stock.
Nowhere is there a pure creation or production of power
without a corresponding exhaustion of something
to supply it.
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Michael Faraday, Chemist and Physicist, 1840.