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Trendline and Channel Tutorial: Part 4All traders are different but I personally find it difficult to use standalone channels to consistently initiate profitable trades against. Not the least of the problem is that the channel continues to either rise or fall, making a secure place to hide a stop above/below more difficult. But I find them particularly useful in three aspects. The first, and by far the most important, is that a channel allows one to quickly visualize the ebb and flow of supply and demand. As described earlier in this series, the relationship of price to the channel boundaries and the median line offer insight to the strength of the underlying trend (increasing or decreasing). The second is in the use of channels to rebalance existing positions against. I find tremendous value in trading around conjunctions with other support/resistance techniques. In other words, zones of support or resistance provided by the confluence of channels, horizonal patterns, fibonocci, momentum, and chart patterns result in more reliable entries than simply trading the width of the channels. In this piece we concentrate on finding suitable trading confluences. Finding a confluence: After the late March 2022 pivot (point A), the initial supply line A-C could be drawn along with a parallel initial projected oversold line from point B. By early August the channel top (supply line) intersected price in the area around 4330. In the Wyckoff perspective, the downtrend represented the stride of supply and represented a significant chart reference. In late May, price exceeded the initial projected oversold line, requiring a redraw from point D. Between early Jan and mid July 2022 SPX declined from 4797 (A) to 3640 (D). The .618% retracement of the entire decline bisects around 4313. From the low (1) on July 14, SPX rallied for 22 trading days. From July 26th an initial demand (uptrend line) could be projected. By the 29th an initial supply line (channel top) could be drawn. These two lines defined the minor channel. By the middle of August, the minor channel intersected with the major channel in the area around 4332. Price was also scraping across the top of the rising Bollinger band and the daily stochastic oscillator had been pinned in overbought since early August. Levels: 4330 - Major channel top 4313 - .618% Fibonacci retracement 4336 - Upper channel (supply) line in the shorter perspective channel. 4332 - Bollinger Band top Stochastic and other momentum indicators pinned in overbought. As price moves into a confluence zone, I typically move to the chart of one lower degree and begin monitoring for a potential trade entry setup. SPX Hourly: In this perspective the channel becomes clearer. It is important to note that after August 8th, price never again approached the supply line and instead hugged the median line (inside the oval). This offered a clear indication of waning demand. On August 11, I moved the supply line (red dashed channel top) lower, providing yet another layer of resistance. Once price moves into a resistance confluence you may use your preferred method of trade entry and stop placement to initiate a trade. Finally, most price action is only noise and there are only a few points on any chart where behavior becomes meaningful. Confluences, channel tops and trend lines represent one of instances. If no confluence exists, move your attention to a different chart. There is always a tradable confluence somewhere. And finally, many of the topics and techniques discussed in this post are part of the CMT Associations Chartered Market Technician’s curriculum. Good Trading: Stewart Taylor, CMT Chartered Market Technician Taylor Financial Communications Shared content and posted charts are intended to be used for informational and educational purposes only. The CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. The CMT Association does not accept liability for any financial loss or damage our audience may incur.
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SP:SPXEducation
by CMT_Association
17
Bitcoin recovering from the support line of the rising channelBitcoin has been moving in a broad rising channel on the weekly chart that started since the April's peak. Recently, the price bounced on the support line of the rising channel. This pullback came in line with the primary bullish trend as the 20-week EMA is still moving over the 50-week EMA, which indicating that the bull market is still intact. The appreciation can resume in the coming sessions as the market seems to be trading out of the oversold waters according to the Williams %R and the IMI. Yet, the support line of the ascending channel is safely driving the price northwards. Hence, the bullish move is intact unless the bears press the price below that support line and the most recent trough around $33,000 . Currently, the price is testing the 38.2‬% Fibonacci retracement level as well as the 20-week EMA at $46,762 where the price has dropped last week. Should the bull run continue, the door would open for the resistance level at $52,500 and then the 61.8% Fibonacci retracement levels at $55,273 . Additional gains from here would clear the way towards the tough resistance zone of $59,700 to all-time-highs in November 2021 at $69,000 . On contract, if the bears take the upper hat again, the price may seek initially support at $40,000 and then the support line of the rising channel and the most recent low near $33,000 . Falling beneath $33,000, the spotlight will turn to the key support zone from $31,230 to $29,000 from January 2021. Summarizing, the most recent trough in Bitcoin may live in the medium-term amid strengthening momentum signals, the upward trajectory could keep buying confidence intact, as long as the price holds above $33,000.
BITMEX:XBT
by MohammedEl-Sherbiny
Gold is Testing an Important LevelGold after penetrated the resistance area around 1800 and rallied for few days, reversed below the longer-term Moving Average made a lower high around 1835. Currently, Gold is retesting the support area at 1800 forming small candles which indicates the strength of this area to push the price upward to 1835 and 1850. However, the oscillators started to provide negative signals make the bearish scenario, the violation the current support to the downside, is still hold, in this case Gold can be forced to test the upward trendline at 1753.
TVC:GOLD
by MohammedEl-Sherbiny
CyberMiles (CMTBTC) Trade Signal (165%)CMTBTC ENTRY: 0.00000055 - 0.00000062 TP1: 0.00000075 TP2: 0.00000082 TP3: 0.00000092 TP4: 0.00000108 TP5: 0.00000120 TP6: 0.00000135 TP7: 0.00000165 STOP: Close daily (D) candle below 0.00000045. -------------------- This is a single 'push' trade signal for CMTBTC. I call this short-term not because of the amount of time it might take to hit the targets but because of the number of targets. Remember that it takes TIME for these charts to develop. Any trade can take days, weeks, and sometimes even months to fully develop. Patience is absolutely necessary to be successful while trading crypto. This is not financial advice. Namaste.
CLong
by AlanSantana
2
CyberMiles Higher Low, Bouncing Off MA200 (150% Target)CyberMiles (CMTBTC) is now showing a higher-low compared to May with prices moving above MA200. Staying above MA200 is a strong bullish signal on this chart set up and can lead to prices going higher. The next target is sitting at 203 satoshis followed by 324 for a total of 150%+... It can take a few weeks before prices start to increase, so always keep in mind that patience is key. This is not financial advice. Remember to do your own research and build your own plan before you trade. Namaste.
CLong
by AlanSantana
2
Uptrend Channel on CMTHello Traders, CMT at the daily chart seems to be inside the uptrend channel and testing the resistance of it on 1D timeframes. Today's candlestick is called a dark cloud, which is a bearish sign especially by the fact that this movement is happening in a resistance zone. Based on the daily chart, we can test the support of the channel one more time and still look at a bullish trend on the daily chart. We going to pay attention to the green line when the price reaches that area The price will start to look bullish once again at this level but will be on a resistance zone on the daily chart. .
CLong
by MarketMinds
CyberMiles | Patience Starts To Pay Off! Big Move Soon! Did you close or did you keep? Would you like to win? Patience is key! ---- Here we have CyberMiles (CMTBTC) after a very nice but short few weeks wait paying off. Once you buy-in, all that is left is to wait patiently and collect profits on the way up. The chart for CMTBTC continues super bullish and printing 'strong consolidation'. Prices are now trading above MA200, which opens the door for big growth. Feel free to click below for additional details, signals and previous charts: March 8 June 6 Namaste.
C
by AlanSantana
19