What I would do is play short...and if the pink downline is broken on the UPside. Then I would immediately get out of the short, because he's making a new channel formation. The upper channel line is kind of a built in stop loss line.
The problem with the smallest channel formation IS...it's ALREADY a 3 point fulfilled formation. Very rarely do you see 4 bounce points in a channel. It's usually 3 points. BBT , BTB, TTB, TBT , TBB, BTT .
The most lucrative and easiest to read formations are TTB and BBT . Start point, LEAD point and off to the other side. The channel angle is already established and the VERTICAL post distance at the start of the channel is already known. They continue on and on. As soon as it hits anywhere on the opposite side, it almost always reverses direction. Piece of cake as long as you can get the LEAD point right. Sometimes the channel is shot FROM the imaginary vertical post at the start of the channel. This is the key to the method.