Dow also considered the effect of volume on a trend.
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If you are going to trade professionally it is vital that you can identify trading opportunities.
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When a major support level is about to break there are normally thousand of traders with some technical training who are aware of this and exploit the situation.
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Over time we can recognize that this movement of price to and from the trend line forms a channel, which once identified can be traded.
The three trend lines that can be drawn from the initial point of the trend through each of the retracement extremes are known as Fan Lines.
The penny is brand new and has no mark’s or scratches on it.