Today we will speak about this clear structure that we observe on the index.
We can see an expanding channel that has been shaping the movement of the price since NOV 2020. After 150 days, the price is still inside. However, structures are meant to be broken at some point; it can be in the bullish or bearish direction. The idea of this post is to study that.
Bullish Scenario: The first signal we want to observe to develop long setups is observing the price ABOVE the expanding channel + clear correction on that zone. Once we have that, we will aim to trade towards the higher trendline of the Daily Ascending channel.
Bearish Scenario: If the price is not able to close several candlesticks above the expanding channel, those are bad signs for the bullish view, and we should be open to a corrective movement towards the white ascending trendline of the base of the expanding channel.
Thanks for reading!
We can see an expanding channel that has been shaping the movement of the price since NOV 2020. After 150 days, the price is still inside. However, structures are meant to be broken at some point; it can be in the bullish or bearish direction. The idea of this post is to study that.
Bullish Scenario: The first signal we want to observe to develop long setups is observing the price ABOVE the expanding channel + clear correction on that zone. Once we have that, we will aim to trade towards the higher trendline of the Daily Ascending channel.
Bearish Scenario: If the price is not able to close several candlesticks above the expanding channel, those are bad signs for the bullish view, and we should be open to a corrective movement towards the white ascending trendline of the base of the expanding channel.
Thanks for reading!