MAJOR TREND IDENTIFICATION- ABCD Pattern w/ Support & Resistance
To add to the major ABCD pattern noted in my previous posts, I've added support and resistant zones. I won't be concerned so long as the price stays within these support and resistance zones.
I've also added a minor resistance zone, the price can be influenced by so many different factors that minor breaks in support and resistance is nothing new. Which is also why I prefer to work in zones. If I were to use lines, psychologically, the lines are more set-in-stone, which doesn't comply with the volatility of the price. Support and resistance shouldn't be viewed as a set number, or a set line but rather an area/zone.
The minor break of the channel we've seen in the past few hours is not a breakout, as volume doesn't support it. There isn't enough bullish volume.
I've added a resistance zone on top of the channel, as a secondary resistance. Which I should have done earlier due to the fact that the wicks of past candles have mostly landed within this zone.
I still believe this channel is just as strong, minor breaches are insignificant, I also still believe the price will still end up on point D of the ABCD pattern, and have added a target zone (in green)
--Obviously this is all my interpretation; this is my idea of what the price is doing and due to trading being abstract rather than set mathematical numbers, it's subjective.
I've also added a minor resistance zone, the price can be influenced by so many different factors that minor breaks in support and resistance is nothing new. Which is also why I prefer to work in zones. If I were to use lines, psychologically, the lines are more set-in-stone, which doesn't comply with the volatility of the price. Support and resistance shouldn't be viewed as a set number, or a set line but rather an area/zone.
The minor break of the channel we've seen in the past few hours is not a breakout, as volume doesn't support it. There isn't enough bullish volume.
I've added a resistance zone on top of the channel, as a secondary resistance. Which I should have done earlier due to the fact that the wicks of past candles have mostly landed within this zone.
I still believe this channel is just as strong, minor breaches are insignificant, I also still believe the price will still end up on point D of the ABCD pattern, and have added a target zone (in green)
--Obviously this is all my interpretation; this is my idea of what the price is doing and due to trading being abstract rather than set mathematical numbers, it's subjective.
Comment:
If you aren't familiar with my ABCD pattern analysis, check out my page. This is the 3rd update.
