 Welcome to the channel. This is Reliable Rudy. Today we're going to pick up on our wayside technology group charting analysis for our part 3 video. In the first video we go over the financial statements. In the second video we plugged in numbers for the company to give us a ballpark range where we're interested in the stock. And lastly we're going to go over the charting. But before we do that, first I am not a licensed financial advisor. Everything in this video contains only my opinion and it's for entertainment purposes only. Okay so going into the chart, here we go. Now I see a few large drops right here. Now I've already looked at the chart and made a few attempts at this video and there is a lot of information to go over in here. So I'm going to try and keep it as brief as possible. But first we're going to put our long-term trend line in. So right through here I want three points of contact. I got three points of contact right here. But also I see a nice trend line right here. Now we're going to dive in deeper on this when we do crack this trend line. Actually we'll do that real quick before we get into more of this analysis. This actually ties into a couple things that I'm going to talk about in this video. See this double top right here? We get a crack of the trend line. See how we're back-testing? Let's zoom right into that. See how when we crack that support we put a couple weeks into the bottom of it. So acting as support multiple times and now acting as resistance. Now I'm going to go more in the depth of this double top on what's interesting about it. But first we're going to take that line out. Now the history of the stock I can see it IPO'd in 1995 and initially has a very large drop right in here. 60%. So let's put a fib tool through that. Now I can see rejected at our first extension and we put this quadruple top in. So there's our top lower high, lower high, lower high. You see that quadruple top right here? Now what corresponds after that? We have a 1, 2, 3, 4. Now look at how on our wave 4 we back-test the bottom of wave 1 and we do get a 5 wave structure. Now this is the start of my long-term trend line. So actually what I'm going to do is I'm going to take that top and we're going to push that through the entirety of the chart. Now I can see from this large drop right here what drop is this? 91%. Now we have not got a full extension on this. Now this transpired from 1998 to 2002 and we have not got a full extension but I can see throughout this chart multiple times. I'm taking my fib tool from this top. Look at how many times we come in contact with this. Boom, boom, boom, boom, boom, boom, boom, boom, boom, boom, boom. Now when we finally do push that look at how we're trying the hole on top of that. We set this short term double bottom. You see that little bit of a higher low trying the hole on top of that and now we haven't come back since. So we are going to mark that right there and I'm also going to mark as many points of contact along those lines so I was very focused on this wick how we came in contact. Hard rejection off that but all kinds of support built in right there. Now where are those lines at from 19 to 17 and a half? Where do I like the value of the company? I like it at 19 to 17 and a half. I'm very interested in the stock right there. So going back to this here's our long-term trend line. What are the odds we fan out and eventually we revert back to this and revert back to our long-term trend line. This is going to be a buying window for me. We'll touch more into that actually we'll go into that more right now. So if I look at the day chart I can see I also have a gap fill right here. Let's look at that. So let's mark this gap fill out right here. Now I can also see that's a screaming gap by the way. Now I can also see we have a gap fill right here. Is it possible that this turns into a one two three four five wave structure that reverts down to that gap? It is possible. Now if that transpires and we get a five wave structure down to that I could look at that as a wave one. We get a retrace. We get a crack of that support. We get a back test of the bottom of that support where we get our wave five down into where we're more interested in the stock. Very possible if that happens or it is possible that we extend for a full extension. Our full extension is on this particular example is $73. So I'm going to go back to the week chart trying to go quick through this. I'm going to pull this back over right here and we can see that our full extension is $75. What are our full extensions on these other drops? $62 pretty much right in line. And then our last one is this fall right here. Isn't it crazy how this corresponds and meets almost identical? If we do get a stock price up here and we set some type of double top watch out I'm saying it right now watch out. So I'm going to get rid of these three fib tools. Actually let's just clear the chart. I feel I got some good information across right there. So you can see right here I mentioned this five wave structure. Now we get another five wave structure right here. I'm going to show it. One, two, three, four, five wave structure. That was our other drop that we took. Here's our other drop right here. Let's go look at this briefly. We get a one, two. Now look at how we try to hold support right here. We attempt to. There is attempt but ultimately when that support cracks one, two tries to hold support three, four. Look at how on this wave four we back test the bottom of wave one and then we get a wave five. Now this just so happens. Now it would be impossible to have a trend line set up right here at this time period. But this is where we put our overall trend line. Boom, boom. There's our third point of contact. It would have been impossible to understand that. Now this is where people like the value of the company right here and valuation kept it up. This is how we got this trend line formed. Now I'm going to take this off briefly. We're going to talk about this trend line right here. So right here now people would have had this trend line put in right here. See how we act as support multiple times throughout this? It's going to tie in. You're going to understand what I'm talking about right here. So I see a left leg. We build our neckline. We get a higher or low. We get our extended right leg. If you can't see what I'm looking at right there, I'm going to draw it in for you. We get our extended right leg. Now what am I going to look for? I'm going to look for a back test of the neckline. Look at what this wick does. Let's draw this trade out. Boom, you got wicked into your trade. Where's your stop loss at? You got a stop loss right about there. Now what is our two to one and three to one risk reward? There's a two to one. All right, there's a one to one. Sorry. There's roughly our two to one. Here is a simple trade setup that you would have got triggered in on. Back test of the neckline. Here's my one to one, two to one. Now let's draw out our three to one. Now let's say you were holding out for a three to one. How am I going to know when to cut out of that trade? Right at our two to one risk. This is when we get triggered in at our two to one. Look at this double top that's set. Now let's say you still believed in this trade and you were looking to get that three to one risk reward. Right when we crack this trend line that we have set where we hold support all the ways through, you could have cut out of this trade at a positive trade still and saved yourself. Let's look at this percent fall. Let's say, okay, we cracked this trend line, give it a couple days. Okay, we're out of the trade. Let's say you got out of the trade right here. You saved yourself 44% still. You had a positive trade on this. Nobody is going to knock you for selling this when we crack this trend line. So either as our example back test of the neckline trade that you could have drawn out. Now I can also see with this trend line, if I pull it all the ways through, when we crack this trend line, it is the year 2017. It is three years before we come in contact with this and we do get price action off this. Look at this multiple wicks we put into this and then we have a sell off and we get price action off it even more. That's crazy. Now we do get some trading days above this and we do have let's clear out and remember that we have gaps that need to get filled in right here and our long-term trend line is right here. So is it possible that we get a full extension on the stock? It is possible, but ultimately I'm not interested in the stock at that price. I'm more interested right there to right there to right there. This is where I'm interested in the stock at and I'm not going to go too much more into depth right here with this video is at 10 minutes. I feel there's some good charting information right there. If you're in this stock for a full extension, right now here we have a short-term trend line that we have built out. You know, we're cracked below that and we're backtesting the bottom of it right now. Not a very good sign and we have some pretty alarming gaps on the chart. So I would just say be careful. Be careful holding on to this because I mean if this were to turn into a five-wave structure one, two, three, four, five down to these gap fills from the current price that we're at right now looking at a potential 50% drop down to this trend line. So I would just say be careful in terms of a charting aspect on this. But that is going to complete the video. I hope you guys enjoy the content and as always I'll see you on the next one.