Since the price reversed quite sharply from the $1 area, it might be a great time to trade this channel.
On the chart I’ve marked two potential areas of resistance, R1 and R2. These areas are based on recent swing highs and round numbers. Do your own due diligence.
Profit = +48%
I have a quick question about your "channel" idea. I know what a channel is, but is it applicable to the chart with log-scale? I mean your y-axis of the chart is kind of log scale, previous high and low and current high and low(predicted) are different in scale.
Anyway I agree with your idea.
When trading with a normal scale, seeing market patterns becomes very difficult when you look at time frames larger than 15m. Take a look below for an example:
As seen in the pictures above, the normal scale is useless for seeing patterns on longer TF.