Let's take another detailed look into some parallel channels structures/patterns in price action analysis.
Recall my previous educational video on Ascending/descending channel correction, they are higher probability reversal price action structures/patterns.
Today I want to go over the horizontal parallel channel structures/patterns as well where they are more neutral, more advanced to analyze and forecast the potential direction of the impulse phase following after.
Let's take a look into some of these horizontal parallel channel corrections, and break them down more.
In my opinion, the longer, deeper these types of parallel channels go, the stronger the next impulsive phase will be. Although they can be tricky depending on whether they are continuation or reversal correction.
I will go over for examples in different markets to pinpoint some of these price action structures/patterns.
Below are some of the important topics that I mentioned in the video.
Reversal Ascending/Descending Channel
Risk Management: 3 different entries on how to enter the impulsive phrase of price action
Multi-time frame analysis
Identify a correction in price action analysis
Continuation and Reversal Correction
Any questions, comments, or feedback welcome to let me know thx :)
Great summary as usual. Can I ask for entry on correction on breakout of channel, do you need to wait for 2 swing highs and 2 swing lows on a 15min chart as minimum or is it a bit of guesswork? Thks
jojofang0901
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@joeyblz same idea to have the 2 swing highs and lows. But understand that on the LTF even tho it’s a small flag, when you drop down to 15/5 mins chart, there will be price action and correction confirmations still
joeyblz
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@jojofang0901, If on the LTF I do not get the 2 swing highs and lows, is it best not to enter then?
quality stuff