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Chart Pattern Analysis

figUre 13.51 Channel Projections on the 15‐Min Chart of EURUSD.

Source: MetaTrader 4

figUre 13.52 Channel Projections on the 4‐Hour Chart of USDCHF.

Source: MetaTrader 4

Channel projections may be determined internally and externally. Internal

price projections occur within the original channel, whereas external projections

occur outside the original channel, with the creation of a new larger channel par-

allel to the original channel with the return line projected from a higher peak that

is located further back in time in a rising channel and from a lower trough that is

located further back in time in a falling channel. Figure 13.53 depicts an external

price projection in a rising channel.