Stacking logarithmic (log) channels - Secret tool in crypto Ep 3Stacking Logarithmic Channels - Bitcoin's Hidden Fractal Structure | Signal & Structure Episode 3
In this third episode of Signal and Structure, we explore a powerful but little-known technique: stacking logarithmic channels to identify critical support and resistance levels in exponentially growing assets like Bitcoin.
Core Technique Revealed:
The Logarithmic Channel Stacking Method
Start with a base channel on log scale (demonstrated from November 2011)
Copy and stack identical channels above/below the original
The midline of one channel becomes the boundary of adjacent channels
Creates a fractal structure that respects Bitcoin's exponential growth pattern
Key Principles:
Always use logarithmic scale for crypto channels
Midlines are as important as channel boundaries
Multiple touches validate channel placement
Channels maintain proportional relationships when stacked
Practical Demonstrations:
Historical Validation Points
November 2013: Top of first channel ($1,200)
December 2017: Top of second stacked channel ($19,000)
November 2021: Bottom of third stacked channel ($69,000)
March 2023: Bottom of fourth stacked channel ($15,500)
Current Market Analysis:
Bitcoin dancing around the midline of the current channel
Lower boundary support around $90-92K (aligning with CME gap)
Technical ceiling projections discussed with appropriate caveats
Channel Construction Details:
Monthly channels: Black, thickness 4, 30% opacity
Weekly channels: Maroon/brown, thickness 3
Always include midlines for additional confluence
Adjust opacity to prevent chart clutter
Advanced Insights:
Why log scale channels reveal patterns invisible on linear scale
How to validate channels using midline touches
The relationship between channel midlines and new channel boundaries
Dealing with ambiguous channel placement (multiple valid options)
Time-Saving Tips:
Use TradingView's copy/paste to maintain exact channel angles
Set consistent color coding for different timeframes
Keep channels semi-transparent for better visibility
This technique works because logarithmic scale represents percentage moves consistently - a 100% move always appears the same height regardless of price level. This creates natural harmonic levels that price tends to respect over long timeframes.
While specific price projections should be taken as possibilities rather than certainties, the method itself provides a robust framework for understanding Bitcoin's price structure across its entire history. The convergence of these channel levels with other technical factors (like CME gaps) adds additional weight to these zones.
Remember: Channels are guides, not guarantees. Use them for context and confluence, not as standalone trading signals.
