Lines, trendlines and channelsLines are one-dimensional figures that extend endlessly into a future and which connect the price segments on a chart. They are often used to determine a trend and particular support and resistance levels. Lines are easy to draw and use as technical tools. Over time, lines became implemented into various trading systems such as Andrews' Pitchfork and Gann Fan Lines. However, lines have countless more uses. For example, lines can be used to section particular parts of a price pattern. Additionally, they can be used to draw horizontal support and resistance levels. Lines also find utility in measuring the speed of the price ascend or descend. Furthermore, they can be deployed in various trading strategies and used to identify a trend.
Illustration 1.01
The picture above shows the daily chart of Microsoft Corporation stock. A simple dashed line (white) measures the percentual decline between 22nd November 2021 and 8th March 2022.
Trendline
The trendline is a simple line that connects prices across a chart. It reflects a primary trend in the prices of stocks, commodities, etc. Trendlines can be used to construct channels and numerous different bodies. In addition to that, trendlines can also act as resistance or support.
Illustration 1.02
Illustration 1.02 shows Lockheed Martin stock on the daily chart. It also shows the trendline (white) pointed to the upside as it cuts through a substantial portion of lows.
Channels
Channel can be constructed by two parallel trendlines, which act as support and resistance levels. A channel can be sloped upward or downward depending on the general trend of prices. When a channel is correctly determined and drawn, the price often moves between the two boundaries. However, occasional breakouts occur. As a result, they establish a new trend or validate a current one once the price returns to a channel.
Illustration 1.03
The image above shows the daily chart of gold. The channel (white lines/boundaries) can be observed as well. False breakout took place on 27th January 2022. However, the price retraced back into the channel on 9th February 2022.
Resistance and support levels
Often, a line or trendline acts as a particular support or resistance level. The function of these two levels is to halt price rise or decline. Typically, it is considered bullish when resistance is penetrated to the upside. Contrarily, when support fails to hold selling pressure and breaks, it is usually a bearish sign. Resistance and support can be drawn by a simple horizontal line. However, resistance and support can be at a slope. That is common, for example, for channels in a strong uptrend or downtrend. Generally, the significance of support or resistance grows with an increasing number of successful halts being put to a price rise or decline.
Illustration 1.04
Illustration 1.04 portrays the daily chart of Bitcoin. Major support and resistance levels are indicated by white horizontal lines. The first top also acts as the resistance of utmost significance as the price previously halted its rise at this level.
Speed lines
Speed lines are three consecutive lines used to estimate future support and resistance levels. In an uptrend, speed lines are constructed by creating a box connecting a low point in the lower-left corner and a high point in the upper-right corner. Next, a vertical line connecting these two points is sectioned at each third and in the middle. Then a speed line is drawn from the actual low in the lower-left corner through the right side of a box where sections were marked. These speed lines are extended into the future and considered to estimate natural support and resistance levels. Modern techniques include creating speed lines, such as sectioning a box according to Fibonacci ratio numbers.
Illustration 1.05
The picture above shows Tesla stock on the daily chart. It also shows the unconventional construction of speed lines from a box cut into four equal sections.
Disclaimer: This content serves solely educational purposes.
Speedline
Happy Days are Here Again!Irrational Exuberance! Bad news is good, good news is gooder!
The gaps tell all. Measured move from the runaway gap ought to end up around 388 +/- 2 pips.
There must be and certainly will be a pullback from a last exhaustion gap, may gap up sometime 1-3 Nov.
Fed minutes on 3 Nov may be catalyst for pullback. Likely pivots shown, 1/3 speedline most likely, given extreme fearless bullishness.
Can bull anywhere anytime from pullback to any of the levels shown. Not even attempting to guess where this might occur, get ready!
Final ATH TBD, might come in Dec for Santa Rally IMO. Would be a 5th of V EW, a monster. The subsequent break in 2022 will be spectacular...
Not advice, just A TOOLUSE TUTORIAL... REMEMBER THE TREND IS UR FRIEND TILL THE END AT THE BEND! GLTA!!
BTC | Following the correction for good buy opportunitiesBitcoin lost its bullish momentum and the bears have taken over.
I'm looking at personal buy opportunities that might be somewhat reasonable from where we are currently.
Critical support areas are the main trendline (solid off white line), the 33% support line, and the 50% support line from $20 k.
Speedlines at 33% and 50% could become potential support lines while the current uptrend (dotted gray line) has now become resistance.
This is the moment we've been waiting for.
Happy Thanksgiving Everybody!
BTC | Looking at potential Long, Short, and Accumulation Zones Using the Gann Fan to sift out potential areas for going short and/or long based on potential long term support trends on a log scale.
33% and 50% speedlines based on the current uptrend shows potential areas for a correction should we lose momentum.
If the long term trendline is violated, potential support at 50% from $20 k could play a key role should things go south.
Long term track for $20 k by August in 2021 still looks healthy.
We can always be shocked and surprised by bitcoin as we always have been.
Happy trading and Happy holidays!
Bitcoin Macro Trend Analysis (from 9/27/15 to 11/23/20)Looking at Basic Trends using All / Weekly for All Time Trends using Log Scale
Support Trend Line from 9/27/15 to 11/23/20
$20 k Resistance
Support Retracements at $6.7 k, $10 k, and $13.3 k
Support Retracements at ~33%, and ~50%, and ~66% from $20 k respectively
Support Trend Lines showing repeated vertical action with RSI @ ~85% at critical peaks
Speed Lines set to 33%, 50%, and 66% scaled by using the major trend line
Repeated attempts to hit previous ATH of $20 k with approximately less than one third of the previous vertical distance to cover
Dotted trend lines showing identical angles which vary depending on log scale (approx 64 degrees at this scale)
Bitcoin showing its gradual trend to revisit its ATH while showing a strong trend at a macro scale
Eventual continual retests back to the trend line should inspire confidence over time
BTCUSD - Short term bearsh again, long term bullishParameters:
Blue diagonal lines - Fib speed fan from ATH to trough
White dotted lines - Fib retracement lines
Green hlines: support lines found by reading the candles and watching price action
Red hlines: resistance lines found by the same way, and in addition by looking at previous supports or resistances.
At the moment, we're climbing up high and fast. It looks great! But I do believe we're do for a correction within the ranges of a few hundred dollars. MACD is about to cross under and RSI is getting higher. $BTC has only been able to make a wick above the $8482~ resistance line, which is an important resistance to break to show that we're on the way to a reversal. Failure to breakout would likely mean a drop back to resistance, continuing consolidation.
If we are able to push through, there is heavy resistance at the highlighted red eclipse. That is the speed fan 0.75 ratio line, retracement line, and a resistance line. I 100% believe if we are able to breakout from there, $BTC will resume an uptrend.
$BNB/BTC - Bearish, possible dump from wedge formationTools used:
Speed resistance fan, peak to present trough
Retracement, previous trough to peak
EMAs to watch crossovers
SMA to see
Shapes
High volume, previously cheap coins all form the same pattern; huge price spike, then converging into a falling wedge. They all end up doing the same thing: baby pump. After Binance went down, I am suspecting a possibility of users selling off all their BNB, which would cause the wedge to breakout downward instead of up. There isn't strong support but there is strong resistance. Buy low to use for transaction fees.
The white triangle area is where it may continue converging if it does not break out in either direction.
Bitcoin breaks new records.Here talk only about 2017, as that was his year, and no one of years before. On my post from 8 Dec2017, can see that BTC NEVER down less than 50% Fibonacci correction,. again in 2017 only, because BTC start to have big attention only since 2Q 2017 up.
17.12.2017 trend turn down on risky speed between 0.25 and 0.382 Fibo, with spike to 11,159.93 . which so near 61.8% Fibo Correction. than recover his position to 17,234.99 break 1/1 and bring hope for next epic number rally to 25,000$ as was predicted by major crypto persons.
Than all movement can see. This graph cant help as in pass, because cant build it before, but relying on this Fibo lines, support and resistance+Pivots, at least can see the hopeless and hopeful range
TRX: Fan speedlines and channels.This is just an update about TRXBTC and my view about it.
Here we've got a major growth channel (yellow lines) and a minor decay channel (white lines) - the thing is: we are inside both. I've applied fan lines where its channel lines origin (zoom out and you can see it) to see the speedlines. That's how it goes: if the 1/2 uptrend fan speedline have been broken, it'll go up, if the 1/1 uptrend fan speedline have been broken, down we'll go. Same logic to the downtrend fan speedlines.
Interesting enough, both 1/2 and 2/1 couldn't be broke in this downtrend (it broke the 1/2 in the uptrend but it has stopped at the 1/3!). Right now here going towards the 1/1 speedline and at this rate we'll reach it @ 540 satoshis so set your stop-loss there.
If it bounces, we'll retest the 2/1 speedline. If it doesn't... well, I don't need to say it :(
Hard times these days. Trade safe!
XAGUSD: Weekly uptrend and quarterly analysisThe weekly chart is largely bullish, and we also count with the quarterly 'Time at mode' signal that implies that price can reach 32.316 by July 31st 2017 or sooner, after the downtrend that started on April 2013 expired.
I am long, and placed a tight stop as signaled on chart. If we get this right, it's a massive home run trade, so don't miss it. If you're not in yet, it's not too late to join. Risk 0.5-1%.
The idea is that Silver held the uptrend speed line in the weekly, and we had massive buying volume when doing so, and a weekly oversold buy signal, courtesy of the RgMov trend analysis indicator.
Now, with a 10 week level on close, the market is ready to launch higher from here after next week action confirms it. The fundamental backdrop further confirms this idea, but we'll have to wait and see. Like any trade this can fail, but if it works, the reward is well worth the risk.
Good luck,
Ivan Labrie.
Russell 2000: Time at mode break downIn this chart I examine the trends in the Russell 2000 index, from the perspective of the 3-day chart.
We can see how the previous 'Time at mode' signals that triggered in the past, forecasted the duration and price range of each rally before a pull back started, and the speed line support levels held, giving way to uptrend continuation.
Now, we're in a tight spot, we need to see bulls hold here, and prevent bears from dragging the index down under the red, or as a last stronghold for the bulls, the orange speed line support zone.
If and when we see a new 11 bar level up here, we can assume trend continuation is in order.
For the time being I remain cautiously long NAS and SPX cfds, as well as a few fundamental picks in equities, but I'm open to shorting the failure of bullish momentum that can trigger by the 20th's close.
Good luck and remember to reduce your risk exposure this week, either via options, futures, or simply changing allocation of funds to more diversified and less correlated instruments, and different trading strategies.
Cheers,
Ivan Labrie.