Long term weekly channel since 2009 has us wicking below the center line into that 2970-2948 area. We spent 13 plus weeks in this area trading and acted as resistance for many weeks and support in others. Before I go long out of this drop it's going to be on that channel line. IF and that's a big IF no more bad news on Corona spreading and such.
It over shot the channel to the up side and then over shot the channel to the down side and then over shot the channel back to the upside with even greater extent and possible the same to the bottom side ( extended move out of the channel)?
JDubTickTrader
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@nsprph, read the book "Price Action Breakdown" by Laurentiu Damir - It will help you understand channels. It's a quick like 100 or so pages and worth your time. You are never going to stay in a perfect channel. I have long term channels, which is the bigger one, and current trend channels. I color code them as well that blue/grey are weekly, green/tan is daily, dark blue/red is 240, yellow is 60 min.
nsprph
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@JDubTickTrader, Thank you for the recommendation of the book. Good luck on your trade and thank you for sharing your info.
JDubTickTrader
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@nsprph, You are welcome! We are all in this together trying to figure out the market and looking for opportunities.