Just kicking around an idea here. Do you suppose if a group of traders trade the same stock a pattern could appear based on wash sales. Stock seems to ebb and flow in a 30 day pattern. Thoughts?
I interpret "wash sales" to mean a trader or group of traders buy and sell the security to increase trading volume. The traders do not intend to show a profit but may profit anyway. The same traders might be able to manipulate the price values in the profitable (for themselves) direction. I suspect the traders might be attempting to create the illusion of an actively traded stock with stock price in a smooth upward trend with no big selling panics. If the traders are underwriters and are holding a large block of stock then the traders may sell short when the stock price rallies above the upper trend line. Is is safe for them to sell short because they are selling against their large block of stock. The short position allows traders to support the stock when the price decreases without accumulating stock. So the price chart pattern might be an upward trend with no large and sudden price drops.