ABSTRACT
This chapter shows the probable consequences of a breakdown through an Intermediate Up Trendline. It discusses the value of the Trend Channel concept for the technical trader would hardly seem to require extended comment; its tactical utilization. The chapter discusses three criteria, then, for appraising the authority or accuracy of an Intermediate Up Trendline: the number of times it has been "tested" or contacted without breaking, its length or duration and its angle of ascent. A more immediate but less important probable consequence of trendline penetration has also been mentioned—the "Pullback." The Throwback is one of the mysteries in trendline price action to which we alluded at the outset. Some technical analysts depend largely on trendline studies, few attempts to use trendlines almost exclusively, but the majority have found they are best employed as an adjunct to other technical data.
