In the ABC corrections after 1995-98 and 2012-15 uptrends, both had wave As ending after a volatile break under the .5 fib level followed by a sharp recovery. The current price is just above .5 fib level. The historical data (sample size of 2, speculation at its finest) suggests longs during capitulation after a break of .5 fib is a good trade. I'll be trying longs at the 1.61 fib level. If this fails, another attempt near the bottom of purple trend channel.
I usually don't consider trend line/channels actionable signal. In my experience, they're random and unreliable forms of support/resistance. That being said, I think obvious channels on daily/monthly charts are worth drawing. At the very least, they help visualize the trend. Best case scenario, they offer high risk/reward set ups.
I usually don't consider trend line/channels actionable signal. In my experience, they're random and unreliable forms of support/resistance. That being said, I think obvious channels on daily/monthly charts are worth drawing. At the very least, they help visualize the trend. Best case scenario, they offer high risk/reward set ups.
Note
Offer low risk/high reward set ups*
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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.