His error was in being too much a technician, apparently.

The fundamentals determine the trend and then you work from there once it is technically observable.

Also, he was using a standard chart. Since the curves of a "french curve" are mathematical exponentials (which wind up mimicing human emotion), one must use a logarithmic chart or you begin to introduce an error which can show up as quite significant if the vertical axis includes a high percentage of price change.

P.