bryanz

Third Trendline Break May Be a Charm

If you would have extended trendline one down further, it looks like the low after it broke the first trendline would touch that trendline once again before breaking trendline two. While I certainly don't claim any mastery of technical analysis the patterns in charts always interest me. How much is pattern and how much is imagined pattern?
I wonder if after breaking trendline two if the market has to return to that trendline before continuing up to trendline three... if it actually will at all. More and more people are banking on a Santa Claus rally it sounds like.