I think the probabilities are in favor to the upside with this chart... I am still fearing the head and shoulders pattern though, but I still feel confident when it comes to taking a long trade considering the chart I just shared :)
I think you are betting against the long term trend direction in favor of the short term direction. I agree looking at your chart it appears to be a descending trend, but if you zoom out and look at a bigger picture like the chart above it really shows that what you are looking at as a downtrend, is simply a minor short term correction in the overall ascending channel..
I hope this explains it a little better
@RCtrader2, But that channel is invalid. If you use trendlines to measure the channel which should consist of lower lows and lower highs in your case, the trendlines can not penetrate the body of any single candle. Besides you did not use the recent lows / highs which also confirms that that trendline should not work in todays market, simply because it is used from past prices and not the recent..