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Signposts MA Ribbons LINES & CHANNELS Bollinger Bands Fibonacci
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Channels and trendlines reflect hidden mathematical order within the markets as well as self-fulfilling prophecy. Since so many participants watch straight-line extensions of 2 prior lows or highs, the odds that an extended line will force a reversal greatly increases. Look for price bars to expand sharply through key channel breaks. When they don't, an immediate fading move back into the channel usually occurs.
Next Step:
Parallel Price Channels