Update: Momental Channel Interplay | $EURO $USD #Forex
Traders,
Here is a quick addition to the earlier analysis (see predictive analysis and technical comments her: www.tradingview.com/v/dCviDOt3/) we would like to offer for our visual traders.
We won't go over our use of the interactive channels, except to say that each channel boundary offers a support/resistance. Each of the lines have the ability to validate or invalidate the subsequent move. Thus, we recommend to interpret each line as a IF/THEN condition. For instance:
IF:
- The overhead bearish channel that is currently weighing on price prevails
THEN
- Price belongs to a bearish directional bias or remains under its influence
However, one has to also look at the RECENCY in price action. In this case, price is supported by a recent bullish trendline, overall resulting in what the basic market geometry trader would identify as a wedge.
A quick comment on the detailed numbers in the chart:
- A black value identifies our initial long entry, whereas a pink lin with upper/lower values identifies a probable support IF price were to soften a bit.
- The GREEN target identifies a high-probability target, in contrast to a RED target which identifies a low-probability target.
The interplay of the lines are dominant not just in this tiny historical segment, but throughout the life of the chart. We have named these "Momental" channels, because they offer a dynamic support/resistance which price tends to spouse, leave and return, acting independently of otherwise common price channels, which have shorter "lifespans" so to speak, by virtue of becoming invalidated once price leaves their defined outer boundaries. For all intents and purposes, the support and resistance lines defined herein tend to pace price at well defined intervals, supporting our views that price has a repetitive and predictive pulse and forward footprint.
Cheers,
David Alcindor
PS: Here are similar use of interactive channels, as follows:
1 - EURCAD:
2 - SPX:
3 - DJIA:
4 - COMP:
5 - NAS100:
David Alcindor
TradingView Moderator
Here is a quick addition to the earlier analysis (see predictive analysis and technical comments her: www.tradingview.com/v/dCviDOt3/) we would like to offer for our visual traders.
We won't go over our use of the interactive channels, except to say that each channel boundary offers a support/resistance. Each of the lines have the ability to validate or invalidate the subsequent move. Thus, we recommend to interpret each line as a IF/THEN condition. For instance:
IF:
- The overhead bearish channel that is currently weighing on price prevails
THEN
- Price belongs to a bearish directional bias or remains under its influence
However, one has to also look at the RECENCY in price action. In this case, price is supported by a recent bullish trendline, overall resulting in what the basic market geometry trader would identify as a wedge.
A quick comment on the detailed numbers in the chart:
- A black value identifies our initial long entry, whereas a pink lin with upper/lower values identifies a probable support IF price were to soften a bit.
- The GREEN target identifies a high-probability target, in contrast to a RED target which identifies a low-probability target.
The interplay of the lines are dominant not just in this tiny historical segment, but throughout the life of the chart. We have named these "Momental" channels, because they offer a dynamic support/resistance which price tends to spouse, leave and return, acting independently of otherwise common price channels, which have shorter "lifespans" so to speak, by virtue of becoming invalidated once price leaves their defined outer boundaries. For all intents and purposes, the support and resistance lines defined herein tend to pace price at well defined intervals, supporting our views that price has a repetitive and predictive pulse and forward footprint.
Cheers,
David Alcindor
PS: Here are similar use of interactive channels, as follows:
1 - EURCAD:
David Alcindor
TradingView Moderator