Any trader will be concerned with the supply shock at $1800 which pushed down price quickly. Profit taking maybe, sure! The question, is there more supply out (or more profit taking) there ready to dump on the market, either now or after any minor advance. This why waiting for the 'C' wave of the A-B-C to form over some more time is a good idea, and once done, we want to see solid buying moving price up before acting, after all we do not want to be early or a lonely bull (Richard Wyckoff logic).
The parallel channel highlights support and resistance, and proves price is moving within a control environment of a 'channel'. A week or two of more price action will give a swing trader move confidence that this trade qualifies as a swing trade with good odds. If goes, and you miss it, move on to the next one.
Of course this is educational only, and consult your broker, mother, wife or financial consultant.
NOTE: The channel tool is from the QuickDraw tool set. The cycle indicator is RTTHurstDPO, and the 90 period cycle was found using our custom Cycle Finder Spectrum (goto to our RTT Hurst tools to learn more).
Original Post: http://bit.ly/2wfd8Il
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