Hello
Below are two sample pictures of a price chart with a trendline. You can see that once a trendline is drawn usually (with high enough probability of occurrence) we see that price reacts to the trendline sometime in the future. I want to know the reason behind this? Does tendline work because inst. traders use them or there are psychological reasons or ... ?
Any advice is welcome.
http://www.uploadimage.co.uk/images/...5468894735.gif
http://www.uploadimage.co.uk/images/...7032640573.gif
Below are two sample pictures of a price chart with a trendline. You can see that once a trendline is drawn usually (with high enough probability of occurrence) we see that price reacts to the trendline sometime in the future. I want to know the reason behind this? Does tendline work because inst. traders use them or there are psychological reasons or ... ?
Any advice is welcome.
http://www.uploadimage.co.uk/images/...5468894735.gif
http://www.uploadimage.co.uk/images/...7032640573.gif