The Fan Principle
Is this the Fan Principle? On page 74 of Technical Analysis of the Financial Markets. John J. Murphy says "breaking the third down trendline (line 3) constitutes a new uptrend signal".
However, I'm not sure if price has to test each line properly from both sides for these to be valid trendlines?
However, I'm not sure if price has to test each line properly from both sides for these to be valid trendlines?
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