/biz/ - Business & Finance

>>51248694
connecting the tops and connecting the bottoms is just basic trendlines. its more for just a visual reference and you shouldn't make any major trading decisions based solely on trendlines alone. that being said, they work relatively well most of the time

you also see parallel lines pop up alot in charts, like this one for CRSR. parallel lines help you visually define a "channel" which you can expect the stock to trade in that range, but eventually the stock will break out of it like in the red circle, so you can't trade based solely off trendlines and channels alone - you have to have an understanding of the overall market conditions and fundamentals of what it is your trading as well. also sometimes stocks will break out of the channel and then revert back inside - also what happened to CRSR

i drew these trendlines for CRSR back in like February / March and haven't adjusted them since - they've done OK but its nothing magical or super-predictive. they're mainly just visual aids