Earlier, we looked at the interplay of and channels. Once it became evident that price was abandoning its by simply breaking out from its upper border, all eyes turned to this .
Note that the smaller lines keep price going at the some momentum as it did when it commanded a conversion of price between the former and this current .
These momental lines are in a way a "footprint" of short-lived, but significant price changes.
In this particular case, you are witnessing a completion with a reactive decline maintained at the pace of that smaller momental channel. This alone should help the trader define a probable level of support, especially if corroborated with a Fib-defined level.
In the case of a , look for a structural support at the level corresponding to Point-B or above, Point-B representing a tolerable low target. If this low-target scenario plays out, it would aim for the bottom of the dominant .
This is one of the basic geometric interplay one may consider using when attempting to peek into predictive analysis.
David Alcindor | 4xQuad.
Predictive Analysis & Forecasting
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