Worth looking at momental lines (i.e.: S/R lines that maintain a similar slope, or rate of price velocity across the chart - For instance, the blue line is able to maintain a parallel relevance at different points throughout the charts, thus defining a channel).
The difference I draw between a channel and a momental line, is that a channel has a well defined upper and lower boundary which gains relevance only at a particularly narrowly defined segment of the entire price field, whereas a momental line becomes a "signature pace" of price, defining the typical slope at which price develops anywhere in the chart - for instance, the RED line maintains a relevance relative to price across the entire chart, regardless of the underlying fundamentals and technical context in which price develops.
In any case, for the time being, the BLUE line remains in control of the pace, ever since November 18th. Consider the flatter the angle of the slope being positively correlated with the strength of of that line. Therefore, in this example, a failure of the BLUE line would confer greater supportive strength to the BLACK support line relative to the YELLOW line.
Conversely, the RED line has imposed the greatest overhead resistance since the first week of December 2013 , and a resistance from this same line remains in force, followed by the BLACK overhead line, which is likely to confer more resistance compared to the YELLOW overhead resistance line.
In essence, the steeper the slope of the line, the shorter its influence on price overtime.
Have a great weekend,
David Alcindor | 4xQuad.com
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Addressing @Flibbr's comment and link whose content objects to establishing any analysis between LTC vs. BTC on the basis that the transactions conclude in USD, the analytical point of a chart pitting one currency against another, or any priceable item against another, has everything to do with the net aggregate interest of the global market whose interest constantly moves from one valuable "vehicle" to another.
In defining the strength of one priced element gaining value relative to another price element, both the chartist, analyst and trader should be especially careful to look at the subtle strength which one currency might gain against another, regardless of the denomination in which it is transacted, as long as they are comparable.
In any case, that link is bizarre and disingenuous, if only for the mathematics of it. If one should not compare LTC vs. BTC in the expression of LTC:BTC, which expresses the relative strength of one against the other, only because the end result of their respective transaction ends up in USD, shows that the author of the link forgot his basic algebraic fact, which is that:
Given: LTC vs. BTC
= USD/USD x LTC/BTC
= LTCUSD x 1/(BTCUSD)
= LTCUSD / BTCUSD
Hence, the implication of the relative value of the dollar is already implied within the relative strength of the chart, so the argument that LTC/BTC chart is "moronic" because each have to be transacted in USD ignores the fact the distributive property of the USD is already applied to the chart itself.
I hope this makes sense and that the author of the linked comment will rethink his algebraic non-sense.
David Alcindor | 4xQuad.com