DislikedI can see how horizontal s/r lines work but a diagonal line which is a function of price and time? Doesn't make any sense. Can someone explain the underlying market mechanics instead of saying they work 'just because'. I've yet to see a decent arguement for the former...
Personally, I see them only as a tool of probability if anything since they're respected the same way in randomness as on a price chart.Ignored
For example, the market is keeping a minimum pace of 7.5 pips per hour over a few days. Once the market sells through that minimum rate of appriciation, you may have a decent indication that the buyers are all done, taking a break, or that the trend has actually changed.
Like you said, it's a probability tool, but every indicator has it's probabilities. The trick is KNOWING what those probabilities are and to know requires a bunch of boring homework i.e. stat studies.