Brackets and Resistors Summary

Brackets and Resistors Summary
Recalling what was learned in previous articles on supports and resistances: When the market goes up and then turns around, the highest point reached before turning is resistance.

When the market continues to rise again, the lowest point reached before starting to rise again, is the support.

In its most basic form, a bullish trend line is drawn in the lower part of the easily identifiable support areas (valleys). In a downward trend, the trend line is drawn at the highest part of easily identifiable resistance areas (peaks).

As for channels, to create a bullish channel, you simply draw a parallel line at the same angle as a rising trend line and then move that line to a position where you touch the most recent peak.

To create a bearish channel you draw the parallel line at the same angle as the downtrend line and then move that line to a position where you touch the most recent valley.

At a time when the market oscillates without a clear course in which the price does not rise or fall consistently we can identify a lateral channel.

 

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.