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It depends on the graph and what data you are making a graph of.

Prediction may be made by extrapolation, in other words, if the graph shows a line moving in a certain direction, it can be sometimes assumed that it will continue to move in that direction. So the line is "extrapolated", to show where it will go in the future.

However, concerning financial markets, often a pattern is sought out in the graph, which could potentially repeat itself. Technical analysis is the study of price movement patterns, which attempts to predict future price movements.

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15y ago

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