SPY trend reversal linear analysis, with parallel stackingAll the annotations speak for themselves...
but just a simple idea to see if there are levels that make sense if the descending line were to be reversed and applied to the ascending trend.
Have to follow those rules, and if too cluttered on choppy weeks- then hold the bottom line and only increase the newest line if you have price chopping greater than the height of the biggest candle in said chop.
ergo, if the biggest candle is say 4 point up from the last trend line off the inception permanent line ascending trend, then hold that line at the high of that day until price breaks above it. If chops continues above it, then draw another parallel 4 points (the height of that largest candle before the chop started) above the original line and hold it there until the chop continues up or is reverts and heads back down.
If you want to see if chop is a flag formation, then take the above example of a big candle up marking a new parallel line high and see if price for 3-4 days stays within it, pull down another parallel from that high and put it on that low...will allow for visual where the flag boundaries may be...
BTC 4hr examples:
