Here is a quick addition to the earlier analysis (see predictive analysis and technical comments her: https://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 . 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:
- The overhead that is currently weighing on price prevails
- Price belongs to a 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 , overall resulting in what the basic market geometry trader would identify as a .
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 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 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.
PS: Here are similar use of interactive channels, as follows:
1 - EURCAD:
2 - SPX:
3 - DJIA:
4 - COMP:
5 - NAS100:
CROW Signal Service: