When you collapse a chart into as narrow (low resolution) as is practical, that you can draw a trend line right down the length of the price.
When you then expand that chart to a normal resolution of price, the trend line is fairly unbiased.
Why is it then, for trends, stocks trade so accurately against this trend line?
Price fluctuations in general appear pretty happenstance but for the most part, the price returns to the trend.
Is it a sort of self fulfilling prophecy? Institutional traders use them and so that acts like a magnet?
What is the theory behind trend lines modeling price in the near term?
Submitted June 23, 2021 at 02:15AM by DarthTrader357 https://ift.tt/3xGG9u3
