MAJOR TREND IDENTIFICATION- ABCD Pattern w/ Support & Resistance
Updated
To add to the major ABCD pattern noted in my previous posts, I've added support and resistant zones. I won't be concerned so long as the price stays within these support and resistance zones.
I've also added a minor resistance zone, the price can be influenced by so many different factors that minor breaks in support and resistance is nothing new. Which is also why I prefer to work in zones. If I were to use lines, psychologically, the lines are more set-in-stone, which doesn't comply with the volatility of the price. Support and resistance shouldn't be viewed as a set number, or a set line but rather an area/zone.
The minor break of the channel we've seen in the past few hours is not a breakout, as volume doesn't support it. There isn't enough bullish volume.
I've added a resistance zone on top of the channel, as a secondary resistance. Which I should have done earlier due to the fact that the wicks of past candles have mostly landed within this zone.
I still believe this channel is just as strong, minor breaches are insignificant, I also still believe the price will still end up on point D of the ABCD pattern, and have added a target zone (in green)
--Obviously this is all my interpretation; this is my idea of what the price is doing and due to trading being abstract rather than set mathematical numbers, it's subjective.
I've also added a minor resistance zone, the price can be influenced by so many different factors that minor breaks in support and resistance is nothing new. Which is also why I prefer to work in zones. If I were to use lines, psychologically, the lines are more set-in-stone, which doesn't comply with the volatility of the price. Support and resistance shouldn't be viewed as a set number, or a set line but rather an area/zone.
The minor break of the channel we've seen in the past few hours is not a breakout, as volume doesn't support it. There isn't enough bullish volume.
I've added a resistance zone on top of the channel, as a secondary resistance. Which I should have done earlier due to the fact that the wicks of past candles have mostly landed within this zone.
I still believe this channel is just as strong, minor breaches are insignificant, I also still believe the price will still end up on point D of the ABCD pattern, and have added a target zone (in green)
--Obviously this is all my interpretation; this is my idea of what the price is doing and due to trading being abstract rather than set mathematical numbers, it's subjective.
Note
If you aren't familiar with my ABCD pattern analysis, check out my page. This is the 3rd update.
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