Does trendline work?

delete4.png
 
Just draw some straight lines on chart and you will win money. Does that make any sense? Can you prove it works or it is a tale?

Every trend has a beginning, a middle, and an end. In the beginning there's not enough information to draw trend line. You need at least two peaks and two valleys to do that.
In the middle there's a brief window where you have enough information to draw a trend line and you also have enough of the trend left to take a shot at it.
At the end you have a solid trend line but sadly the trend is over and your bet is going to lose.

So to answer the question, yes trend lines work. The problem is that the window of time in which they work is sometimes very small, and the amount of patience you have to exercise is extremely large.
 
Back
Top