why today's plunge, page-56

But all it serves to do is to show you how big an up or down trend has currently been. The up or downtrend will either continue up or down, go up or down even more, go up or down even less, or will revert and will go down when it was going up or go up when it was going down. The chart provides zero insight into which option is more likely. However because of the effects I described earlier it makes it look like any big upswing is most likely to get bigger and any big downswing is most likely to get bigger. This will always be true of the chart in a big upswing or downswing. This therefore implies upswing and downswings are always likely to get bigger and corrections are always unlikely to never happen. This is clearly not true. Moreover since the chart rewrites history once an upswing or downswing has corrected it serves to present a fabricated version of its past predictive power: i.e it showed that the trend corrected and when it didn't, but only after the fact. The chart therefore has zero predictive power and only serves to make it look like uptrends only get better and downtrends only get worse. The only people this is useful for is those that want to get caught up in an overbuy or an oversell situation, or those who want others to get caught up in these situations in order to profit from their greed or fear.