Price Channels On Ethereum

Support and resistance levels are critical, yet finding them is an art and not a science, channels are one of our favorite tools to do this, and once found they can show blue skies for higher prices. Previous post: Best Wyckoff Accumulation for 2020

Since computers came on the scene there has been an explosion of algorithms and all sorts of fancy widgets and gadgets to read price and volume action.

Readtheticker.com is old school and we base our primary chart reading on the theories of Wyckoff, Evans, Gann, Ney, and Hurst. In all these theories support and resistance determination is critical, and parallel price channels drawn off A-B-C points that find true price support and resistance levels completes the task.

Below are two charts, standard price chart, and a log price chart with parallel price channels, to show the important contrast.

Note: RTT Plus members can view the private members chartbook of price channels on all major indexes, currency, and crypto's.

Chart 1- Standard.

 

(Click on image to enlarge)

Chart 2- Log with channels.

You can see how price moves between channel lines. If you had known the A-B-C channel drawing points early forecasting price via support and resistance would be a breeze. Please note the A-B-C drawing points need not be extreme price points, they are the price points that generate the best channel fit to price.

(Click on image to enlarge)

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