In the beautiful world of Candles and Lines

There are many people who are skeptical about Technical analysis.
A small dose of skepticism helps in life.
However,too much of it can be a block.
Every field has its strengths and limitations.
Technical analysis also has its strength and limitation.
One of its strength is the ability of trendlines to act as support or resistance.
How is it that the candles take support or resistance so perfectly at the trendline ? 
It is as if the candles know what they are doing and they can sense the trendline as they come closer to it.
The following chart shows a trendline acting both as support [shown by small green arrows] and resistance [shown by small red arrows].
It is also a slanting Head and Shoulders pattern.

 

Right click on chart and click on view image for magnification
Nifty Weekly chart 

Disclaimer: The views given in this blog are for educational purposes only. Readers should exercise personal discretion and take expert advice before taking any action in the stock market.The author of this blog is not responsible for any losses which anyone might incur in the stock market by acting on these views.