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Parallelchannels

Parallel channels provide great visualsI've really started to like parallel channels a lot as part of very simple TA. On the daily or weekly charts in particular. It works pretty well for Bitcoin, it works especially well for stock indices, particularly SPX/SPY for longer term trends. It's just an excellent visual of waning buying pressure as upwards price movement starts to fall out of an ascending channel, or waning selling pressure as price action starts to go sideways and up plus out of a descending channel. With that being said, the most recent trend shift that may well be developing is Bitcoin showing weakness in the ascending channel as it just hit its high for 2023 as seen above. This is in combination with this market cycle indicator potentially indicating we're at or near the top for the crypto space. It's also taking a bit of history into account, with Bitcoin halving cycles. Post a miner payout halving, Bitcoin tends to enjoy it's strongest bull runs for anywhere between 12-18 months after. Then that's followed by exactly 12 months of selling off. That 12 months of selling off can be followed by a smaller rally/mini bull cycle, but that eventually starts to come back down as the next halving approaches. This is why I've been likening 2023 to what happened in 2019. Obviously, history won't repeat exactly, but it often does rhyme. Now, channels are usually only able to be put up with some retrospective, but the idea is that the channel can at least give you advance warning when a shift is about to occur, then some time later you can put up the next channel as support and resistance of the current trend become established, project it out a ways so you can see when it does start to diverge out of the channel. Above is the late 2021 all of 2022 Bitcoin bear market. That parallel set would have been able to have been put up months before it started the bottoming process, and did great at showing the selling pressure slowing, and the price action exiting out above of the channel before it did its final drop in December. Go back some more. The giant parabolic move it started in 2H 2020 and carried into 1H 2021: It stays within that channel, but that last rally in April, it's a pretty weak looking all time high at that point as it's fallen to the bottom of the channel. Let's try with SPX. This is coming out of the COVID crash, which had a pretty radical upwards trajectory compared to many years prior. I lined up according to the top line mostly, trying to hit two of the early peaks, it also happened to go through a gap-down during the sell off in March 2020. I also was aiming to get it close to parallel with the 4 months where price action kind of normalized 2H 2020 into 1H 2021, where there was a pretty consistent trajectory the highs had. After a small amount of turmoil, Feb-March 2021, it resumed another 4 month period of consistent upwards movement, but this time, at a slightly less aggressive trajectory than before, which was not so easy to see unless you drew a line parallel to the previous 4 month period that had a consistent upwards march. Then more turmoil September into October 2021, eventually followed by all time highs in December, but by that point, the highs were now mid channel instead of near the top, clearly showing waning buying pressure. And it indeed was followed by a near year-long sell-off. Let's go there next: The top trend line was well-established pretty early on in 2022, often got referred to as the MOAT (Mother Of All Trend Lines). If we put the bottom of the channel at the June 2022 lows, that then makes the subsequent October lows show that maybe sell pressure is waning some, as it didn't come back down to challenge that lower line. By January '23, it was becoming more obvious that we were setting our first higher low. We did get close to re-challenging that low very briefly in March, and it's been more up than anything ever since. Time to start drawing ascending channels again. I've tried a couple spots, and it just looks like we're in one of our most bullish moments right now. There of course will be small corrections, but until a larger falling out of these channels becomes pretty obvious, I wouldn't try fighting the bulls... This is the main one I'm looking at for the moment, I've also tried drawing a smaller channel for the more recent, aggressive upwards move from May through now, but removed it for this larger trend channel for clarity. You start drawing multiple channels, the chart gets very busy, very quickly. For the larger market cycle top, I'll be keeping my eyes on this channel as well as www.tradingview.com . If I see both a falling out of the ascending channel plus an upwards divergence of the lows in VIX/VVIX, it's time to go full bear, sell sell sell! Until then, run with the bulls. More often than not, it's ill-advised to go against them. For the record, from this point I'm starting to turn bear on Bitcoin for the remainder of the year, but equities still likely have at least several more months of going up pretty rapidly, very similar to 2019. Equities bulls are the ones I won't be fighting here. I actually won't be fighting Bitcoin bulls either, but I am definitely not a buyer here, where I will continue to be long equities. But, if I'm right and Bitcoin finds another nice supported low near the end of this year, that will likely be the point to buy back in/add for the post-halving mania that will ensue.
BITSTAMP:BTCUSD
by dieseldub
Clean impulse on $CRCT - Wave 3 to follow It had a clean impulse on the daily chart. Now with 61% retracement done, it would be a good idea to consider Wave 3. Momentum Indicators are bullish on the weekly chart and it has taken a support from 40-week EMA. The candlestick is a hammer pattern as well. Classic example of resistance turned into a support or in other words, breakout and a retest. Morning Star Candlestick pattern on the daily chart which is a Bullish Reversal Pattern. The setup has a Risk-Reward Ratio of more than 8 with the SL being recent low and profit level being the equality level by Elliot Wave method. With parallel channeling, the approximate time for the trade can be expected around one month.
NASDAQ:CRCTLong
by Shivam_Gaba
SOXL pullback is ready to buy longSOXL the 3X leveraged ETF of semiconductor stocks has gained 145% for the first half of the year. As shown on a 2H chart, the price has pulled back but the overall trend of HH and HL is intact within an ascending parallel channel. Price previously touched the lower trendline on May 24th while it touched the upper trendline May 30th and then again June 15th. Between May 31st and June 7th it did a Fibonacci retracement. Price is presently reversing at the lower trendline and is above the Ichimoku cloud a sign of bullish predominance. Price is above the mean VWAP anchored to the low of May 24th another bullish sign. The RSI indicator showing Ichimoku features has an RSI above 50 and above the cloud affirming a bullish bias. I believe that this is setup for a long trade with about 12-15% upside in two weeks or less for a much smaller risk. A call option trade could also be entertained if a setup with a good delta low spread and high volume / liquidity can be found.
AMEX:SOXLLong
by AwesomeAvani
Watch These Bitcoin Levels Locally!When taking a look at Bitcoin on the hourly timeframe, we can see that on a local level (Low Timeframe) Bitcoin has been very choppy. This price action is currently for the professionals or the ones that like to get REKT. I marked a few areas on the high of the range and the low of the range that I would be interested in trading as long as we get the right price action. Until then, I remain patient on the sideline waiting to execute with my alerts set. Every day the charts provide new information. You have to adjust or get REKT. Love it or hate it, hit that thumbs up and share your thoughts below! Don't trade with what you're not willing to lose. Calculate Your Risk/Reward! This is not financial advice. This is for educational purposes only.
COINBASE:BTCUSD
by Navitility
UDOW a triple leveraged ETF of the DOW indexUDOW is shown here on the 30-minute chart rising over the past month in an ascending parallel channel. The chart shows the price currently situated near to the bottom of the channel which is the support trendline drawn onto the chart with the resistance trendline as well. My trading plan is I will take a long trade of 50 shares with a stop loss immediately below the support trendline. I see a targets as $ 62 and $ 65 making for a very favorable reward for the risk taken. For the entry, I will use the 5- minute chart and enter when the HA candles are green and the RSI is above 50. I realize that the DOW has less volatility than the S & P or NASDAQ but with that is less overall risk of reversals and pullbacks. I tend to take higher-risk trades but see this as having a balancing effect in my overall portfolio.
AMEX:UDOW
by AwesomeAvani
Kirloskar Ferrous Swing Trade SetupThis will be my personal trade Setup, This is not an advice of any kind to initiate trade according to this setup. This is for only for my learning purpose and maintaining my trading journal. Price was in uptrend and then at ATH it was in consolidation from last 4-5 months and broke today with good volume support. Nearby Support is now 478 which was acting as resistance. Once Resistance broke becomes support. If it sustains tomorrow or till this week then we can see good move upwards. will try to buy if price retest this resistance or if there is any pull back near support of 477. and will buy with stoploss at 477. Target will be 515,520. I cannot update charts or my ideas coz i don't have pro subscription i can only post additional charts if reputation level is above 10..need your supports who ever watch or agrees with setups i am posting. It will only take seconds. Thanks everyone.
KLong
by TradeInsights
Gold Epic Bull RunGold has been in the ascending channel since the second half of 2022. We have seen 2 small falling channel formations within this huge channel and we are currently experiencing the 3rd falling channel formation. We can understand that we have come to the end of this small falling channel, so we have come to the support of the rising channel. The rejection of gold from these levels will indicate that it is entering a potential bull run. As we can analyze from the Fibonacci time zone indicator, this run has the potential to continue until mid-July. Breaking the ascending channel and falling below the $1900 level will invalidate this analysis and stop it.
OANDA:XAUUSDLong
by YavuzAkbay
KAVA Long Idea bases on Channel, fib and OBVCheck out Kava's chart! It's positively sizzling with excitement! Not only has it just touched the lower trend line of the channel, around the Fibonacci 0.786 level (ALTS seem To love Fib 0.786), but there's also a tantalizing OBV divergence taking place! This is a prime opportunity for a potential buy signal, friends. Just be sure to set your take profit at the $1.50 area, and your stop loss below 55 cents to manage your risks. So buckle up and hold on tight, because Kava is about to take you on a wild ride to the moon and back!
Long
by DepecheGST
6
A Closer LookThe Intriguing Factors That Have Sustained My Interest in This Promising Buying Opportunity When it comes to GBPUSD, my sights are set firmly on one direction: buying opportunities. The stage is set for a potentially lucrative trade, and I'm eagerly awaiting the perfect entry point. On the 4-hourly chart, a retest of the trendline (right) holds the key to triggering a buying opportunity. As long as the price remains above the lowest trendline, a breakout could present an ideal entry. Alternatively, a break and close above the high at 1.2483 (also on the 4-hourly chart) could be the signal to jump in. Delving deeper, the 1-hourly chart (left) offers additional scenarios for a potential buying opportunity. A retest of support at 1.2421 or a more significant level at 1.2395 could both serve as triggers for an entry. But why this unwavering persistence? Let's turn our attention to the weekly chart, where a break and close above resistance becomes a compelling catalyst for my bullish stance. Although we remain within the sell zone, I'm already scouting for buying opportunities, anticipating a potential shift in momentum. Now, what if I'm wrong? It's a calculated risk. I understand that hitting stops is a possibility, but I mitigate that risk by ensuring most of my trades have a profit factor of 2. This means I can maintain profitability with a 40% accuracy rate. So, as the GBPUSD landscape unfolds, I remain resolute in my pursuit of buying opportunities, armed with strategic insights and a calculated approach to capitalize on potential gains.
Long
by RaynLim
Price Channels — Quick and Easy Guide.Greetings, @TradingView community! When it comes to analyzing market trends, there's a technique that takes trend theory to the next level: price channels. This is @Vestinda, bringing you a helpful article on the topic of the price channels, also known as trend channels, offer an exciting way to identify optimal buying and selling opportunities in the market. Price channels serve as a valuable tool in technical analysis, helping traders determine favorable entry and exit points. By drawing parallel lines that align with the angle of an uptrend or downtrend, we create a channel. The upper trend line acts as resistance, while the lower trend line represents support. These lines highlight potential areas where the market could experience reversals or continue its current trend. Understanding the sentiment of a price channel is crucial. Channels with a positive slope (upward) are considered bullish, indicating an upward trend, while those with a negative slope (downward) are bearish, pointing to a downward trend. Recognizing the slope of a price channel allows traders to gauge the prevailing market conditions and make informed trading decisions. Price channels can be categorized into three main types: Ascending channels Descending channels Horizontal channels Ascending channels display higher highs and higher lows, signaling a bullish sentiment. To create an ascending channel, draw a parallel line touching the most recent peak, aligning it with the angle of the uptrend line. Conversely, descending channels exhibit lower highs and lower lows, suggesting a bearish sentiment. To create a descending channel, draw a parallel line touching the most recent valley, aligning it with the angle of the downtrend line Horizontal channels , also known as ranging channels, indicate a consolidation phase with no clear trend direction. These channels provide insights into potential buying zones when prices hit the lower trend line and selling zones when prices approach the upper trend line. Understanding these channel types empowers traders to adapt their strategies to different market scenarios. Constructing a price channel requires parallelism between the trend lines. The lower trend line is typically considered a "buy zone," while the upper trend line serves as a "sell zone." It's crucial not to force price action into the drawn channels. When the channel boundaries slope at different angles, the pattern is no longer a price channel but a triangle pattern, requiring a distinct analytical approach. Remember that price channels don't have to be flawlessly parallel. In reality, it's rare to find price action that perfectly aligns within two trend lines. As traders, it's important not to solely rely on textbook price patterns but also consider broader market context and other essential cues from price action. Effective price channel analysis involves embracing imperfections and making informed decisions based on the available information. In conclusion, price channels provide traders with a powerful technique to uncover profitable opportunities in the market. By drawing parallel trend lines and identifying support and resistance levels, traders can gain valuable insights into market sentiment and enhance their trading decisions. However, it's essential to remember that perfection isn't the goal. Instead, focus on understanding market dynamics and adapting your strategy accordingly. 💜 So there you have it - a quick and easy guide to understanding price channels in trading! 💜
INDEX:BTCUSDEducation
by Vestinda
19
Head Shoulders Inverse and Parallel Uptrend with TargetsThis is an update to a previous post. RLC / BTC saw a strong reaction, bouncing hard off the neckline of the inverted head and shoulders on its 2nd re-test attempt. The 1st attempt nearly failed but also reacted strongly. Now we're forming a parallel uptrend as it works its way to the TP 1 of the HSi. Reaching TP 1 would confirm a breakout of that as well and provide even higher targets. RLC is an AI-based crypto. If Bitcoin manages to hold up, AI-based crypto projects may be the next big thing after NFTs and DeFi. Why a new chart? The previous chart was not a logarithmic view, this one is. Either could be used, but I'm lately tending to prefer log charts. Both of my previous charts for BTC and USD pair are linked below under related ideas.
RLong
by dudebruhwhoa
6