There’s nothing simpler on a chart than a straight line. And right now I’m looking at two straight lines forming a rising parallel channel on the hourly chart below.
Now I know it’s cool and trendy to pick a top/bottom or major turn and have everyone on twitter cooing in delight and slapping your back BUT, the trend is up – it has been for 2 months. The most recent price action has seen price make new highs then retreat back to the bottom of the channel. Right now that channel low coincides with the 50% line on the weekly chart below.
Yes, the weekly chart stalled at the 50% line and price was held below it for four weeks. But price didn’t retreat (as myself and some others expected). Were the past four weeks just consolidation for continuation? Have we seen resistance broken and now tested as support? I don’t know. The simplest way to know will be to wait and see whether the weekly candle closes above or below the 50% line.
As for day to day trading I have bought the bottom of the hourly channel with a 20 pip risk.