Dont try to quash(SHORT) the spider(SPY) before this happens
Happy new year everyone! May your folio pump to the moon this year :D
So I have been reading some books on price action and came across this setup, called Spike and Channel The setup begins with a spike in price and then goes into a channel. Often, when the trendline is broken, it is followed by the test of the extreme, and then finally the start of the channel is visited. So if in this year, we break the tendline, it will be a good time to think of a long term short. Before the trendline is broken, predicting a decline is unlikely to be fruitful.
On the other side, if you think things are crazy right now, they can get even crazier. I came across another setup where the price breaks above the channel line and goes parabolic. Have highlighted it in green. I am not into fundamental analysis or Macro Economics, but a chart enthusiast.
What are your thoughts?
P.S.
For the book that I have been reading: Reading price action bar by bar -Al Brooks
So I have been reading some books on price action and came across this setup, called Spike and Channel The setup begins with a spike in price and then goes into a channel. Often, when the trendline is broken, it is followed by the test of the extreme, and then finally the start of the channel is visited. So if in this year, we break the tendline, it will be a good time to think of a long term short. Before the trendline is broken, predicting a decline is unlikely to be fruitful.
On the other side, if you think things are crazy right now, they can get even crazier. I came across another setup where the price breaks above the channel line and goes parabolic. Have highlighted it in green. I am not into fundamental analysis or Macro Economics, but a chart enthusiast.
What are your thoughts?
P.S.
For the book that I have been reading: Reading price action bar by bar -Al Brooks
Comment:
Hi all, looks like the trendline has been broken. Odds of a reversal in the trend are higher now. A test of extreme will be a great place to get out.