All the necessary elements are present...After breaking the neckline...
Drawing trend lines and horizontal supports and resistances will be
the next step. Identification and allocation on the chart of possible
horizontal and inclined channels limited by two trend lines is also
very important. Such lines should be drawn only according to certain
strict rules. According to the laws of geometry, it’s possible to draw a
direct line through any two points in space. Therefore, trend lines,
only if they are not necklines of one of the technical formations, will
make sense only when they are drawn through a minimum of three
important points on the analyzed chart.
Drawing trend lines and horizontal supports and resistances will be
the next step. Identification and allocation on the chart of possible
horizontal and inclined channels limited by two trend lines is also
very important. Such lines should be drawn only according to certain
strict rules. According to the laws of geometry, it’s possible to draw a
direct line through any two points in space. Therefore, trend lines,
only if they are not necklines of one of the technical formations, will
make sense only when they are drawn through a minimum of three
important points on the analyzed chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.