wasted wednesday, page-168

“Trendlines, you may have heard it said, “are made to be broken,” but that is one of those exasperatingly sententious remarks which fail to clarify anything. Of course they are broken, they are all always broken ultimately and some very shortly after they are set up. The problem is to decide which breaks (i.e., penetrations by a price movement) are of important technical significance and which are of no practical consequence, requiring possibly only a minor correction in the drawing of the original trendline. There are no 100% certain, quick answers to this problem; the significance of some penetrations cannot be determined as soon as they appear but must await confirmatory indications from other chart developments. In a great majority of instances, however, an important break – one that requires a prompt review and possibly a revision of trading policy- is easy to recognize.” Edwards & Magee 1940

http://books.google.com.au/books?id=wklriRw9a1oC&pg=PA295&lpg=PA295&dq=break+of+trendline+magee&source=bl&ots=MUTNUHDM4-&sig=6DJtKHPJguyi4qCBjS_18mq57mM&hl=en&sa=X&ei=kTRXT8T-KsOeiAeXgYXDDQ&ved=0CDoQ6AEwAw#v=onepage&q&f=false