In this analysis, I show 2 major trend channels on the price action chart, and a key trend channel on the RSI.
On the price action chart, I show how price is capable of moving inside of one channel, or inbetween two trend channels.
Ex) From February 25th to March 20th of this year, price moved in between the top of the red channel and the mid-line of the yellow channel.
Every single time that price has been seen moving in between both a yellow trend channel line and a red trend channel line, price made a decisive move in the direction of the trend motion. It did this once in an upward fashion on February 11th-13th, with all of the other times being bearish.
As you can see in the chart, price fell to the red mid-line and made a bounce to the 50 day moving average depicted in green. I expect that price will get rejected here, but if it doesn't, I expect it to get rejected at the yellow mid-line at max. Assuming this happens, price should make its way down towards the bottom of the yellow trend channel, at minimum, the bottom of the red channel. However, I expect it to reach the bottom of the yellow one, as this is also where the 200 day moving average is lying.
To corroborate these findings, we can take a look at the RSI trend channel. The RSI is also at the crucial mid-line, taking it as resistance. I expect that the RSI will get rejected at this level, and make a decisive move towards the bottom of the trend channel.
I only make decisions based off of the chart, but another thing to take into account, is the market sentiment. Looking on tradingview, I see a lot of people who are bullish/long, and not many bears, I think, a little to prematurely, and purely because of the upwards move towards the 50 day moving average- which will likely just be a fake out.
Please leave a LIKE and SUBSCRIBE if you enjoy this idea and perspective, and as always, do your own due diligence.
Have a great night everybody!
On the price action chart, I show how price is capable of moving inside of one channel, or inbetween two trend channels.
Ex) From February 25th to March 20th of this year, price moved in between the top of the red channel and the mid-line of the yellow channel.
Every single time that price has been seen moving in between both a yellow trend channel line and a red trend channel line, price made a decisive move in the direction of the trend motion. It did this once in an upward fashion on February 11th-13th, with all of the other times being bearish.
As you can see in the chart, price fell to the red mid-line and made a bounce to the 50 day moving average depicted in green. I expect that price will get rejected here, but if it doesn't, I expect it to get rejected at the yellow mid-line at max. Assuming this happens, price should make its way down towards the bottom of the yellow trend channel, at minimum, the bottom of the red channel. However, I expect it to reach the bottom of the yellow one, as this is also where the 200 day moving average is lying.
To corroborate these findings, we can take a look at the RSI trend channel. The RSI is also at the crucial mid-line, taking it as resistance. I expect that the RSI will get rejected at this level, and make a decisive move towards the bottom of the trend channel.
I only make decisions based off of the chart, but another thing to take into account, is the market sentiment. Looking on tradingview, I see a lot of people who are bullish/long, and not many bears, I think, a little to prematurely, and purely because of the upwards move towards the 50 day moving average- which will likely just be a fake out.
Please leave a LIKE and SUBSCRIBE if you enjoy this idea and perspective, and as always, do your own due diligence.
Have a great night everybody!
