Evidence of Symmetry in price behaviour

Abstract

Evidence has been found of a relationship between gradients of consecutive bull and bear markets. The gradient of a major resistance trend line of a bear market can be derived from the resistance line of the preceding bull market. Similarly, a major support line of a bull market can be derived from a support line of the previous bear market. This phenomenon reveals a symmetrical relationship between the gradients of the resistance or support lines on either side of a trend reversal, i.e. of consecutive bull and bear trends.