As you can see we closed on the hourly out of the channel which is the first step. The 4hr will indicate more. This is a great way to watch resistance become support and this will help you see where to draw your lines later on.
Anyways while all this goodness, , price and trend seem to be going well there seems to be a pattern looming.
There has been a lot of talk about h+s pattern recently on TV. AS far as patterns go the and ect are primary patterns, while triangles and rectangles while important are secondary ( according to John J Murphy, get the book.)
Anyways keep an eye on the bad while looking at the good. If we break out then look for fib levels to hold and if this blows up and fails it will be the fault of old h+s .