#LTCBTC Chart: Channel Interplays | #LTC #BTC #litecoin #bitcoin
#LTCBTC Chart: Channel Interplays | #LTC #BTC #litecoin #bitcoin
Traders,
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 support/resistance 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,
Cheers!
David Alcindor | 4xQuad.com
Traders,
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 support/resistance 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,
Cheers!
David Alcindor | 4xQuad.com