I have marked with a yellow arrow the other times in the past year where this same set up occurred and you can see that in almost every instance there was some type of corrective action afterward. Sometimes, as in mid-May 2013, a tag of the upper BB is enough. Also note that in August 2013, after $SPX had tagged the upper BB and began to pull back, that the pull back accelerated when the BB's pushed inside the Keltners
Be careful & GL
I like it though, really, We're defo before a big move, missing VIX spike says we should draw new leg down very soon, but who knows?
On 3/21, the red did indeed drop into the Keltner channel and nothing happened until $SPX rose up to tag the red Bollinger Band while it was inside the Keltners 0n 4/2 so that is an important part of this set up.
I meant did you observe your chart since a long time in a way it's set up? You could simply make it today and mark those intersections as they are visible today, so it is unknown whether they were valid in the past as the indicators could simply repaint.
Or this chart is not today's and you can confirm that all those "signals" from the past were real, you confirmed them and could used them as part of your trading decision. Many thanks
But this doesn't change the fact that all those signals from the past were real. To validate such a set up, go back even further, back test the setup and see how many times in the past the setup proved predictive. That's the only thing anyone can do.
Thanks for your comment & GL