I have become more and more sceptical about traditional technical analysis — support and resistance, shapes on the chart, and so on. Today I decided to have a look at this chart:
Click on the chart for a closer look. See how the price toys with the 200-day moving average (bright blue line); see the support and resistance levels tested and overcome, see the breakouts, re-tests of breakouts and places where you can draw trend lines. It’s amazing how well this stuff works, isn’t it.
I expect you have guessed that this chart was created using a pseudo-random number generator.