Trendlines Playing Tricks

Technical analysis is often abused. Many people think it is all about prediction. Some think trendlines offer use. A common thought from those that believe in predictive trendlines:

“Trendlines work quite well and are not uncommon.”

We came across a good refutation of trendlines:

“Tendlines exist only in the eye of the beholder. Where you draw a trendline will be different to where someone else may draw a trendline. To use them for generating entry signals is about as useful as random entry. Visual containment is about their only use. but if you cant tell the direction from simply looking at a chart then you have problems…The problem for me though [with trendlines]…is my broker won’t let me trade in the past. He insists I make all decisions on the hard right hand edge of the chart.”