The Bavarian Deer Herd

If you stripped off the horizontal time axes from Figures 6.17 and Figures 6.18, so that the length of time they cover is not displayed, and if you showed these charts to any technical analyst, he or she would simply observe that these curves and horizontal levels are behaving just as one would expect support/resistance indicators to work. But let's examine this further. Support/resistance theory was developed on charts of much shorter timeframes. The theory says that traders’ memories of price extrema at the beginnings of these indicators are what drive their behaviors when price later comes back to those levels. But now, S/R behavior is appearing 27 to 80 years after the initial peaks and troughs! Most if not all of the ...

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