Trend lines are a subjective tool. Depending on how you’ve drawn your trend line, price could have either broken the level in question or given a signal that support has actually held. Do you use the most recent, subsequent lows? Do you skip a single, unnatural wick? There are almost endless variations across every single chart. Think of drawing a trend line in terms of a snooker player getting his angles slightly wrong when making a shot. By the time the ball travels the entire length of the table, the angle is magnified and the error is huge. The same concept applies to charting, with longer term trend lines such ... (full story)