Comparing the current BABA crash with the TXN crash of 2000. What's really interesting is that BABA has made a new low from the lows around the IPO. TXN went and tested the leg start from its IPO. I'm looking to see if the BABA bear flag breaks to the downside, or if this is accumulation, where we would see bearish momo being offset to pop back to big support...
There are overlapping numbers because there is more than one channel size.
The key idea is one channel size keeps it's VERTICAL distance always. From 1 to 1p or visa versa remains a constant distance no matter what the angle of the channel. The 2nd thing is, when a channel breaks into future data then you have to go back to a reset point so the channel follows...
The reason angles hang in the air and don't make it to the bottom of the channel is because the arc distance is right, but the angle speed is TOO SLOW to make it continue to the bottom. That's why you'll see overlaps at the vertical posts. Notice the posts go through several arc distances. If the arc distance is right, but no speed the channel bottom can't be...
This method is different than normal channels because the VERTICAL DISTANCE between the channel remains constant. There may be 2 constant channel sizes though. Accurate placement on the significant points is important and there should be minimal margin of error in breakthroughs. I zoom in at least 200% to set them.
I have tried this method on Hi-Caps, pennies,...
