Parallel Channel in WockPharmaThe hourly candlestick chart of WockPharma forms a parallel channel, which creates a suitable long position opportunity with a 30% expected return and a Return-to-Risk ratio of 3. The RSI also shows a value of 29.
Parallels
Explanation about how parallel channel work:Stock first Chance the trend with heavy volume and then price has consolidate in a horizontal parallel channel.
A horizontal channel is formed by two parallel horizontal lines that frame the evolution of the price.
The upper line is called the "resistance line".
The lower line is called the "support line".
A horizontal channel is confirmed/valid if it has good oscillation between the two parallel horizontal lines.
The stock has break its channel with heavy volume and now forming a new channel.
