The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Trend Analysis

uptrend and a channel top in a downtrend represent even stronger evidence of a po-

tential continuation of the existing trend. This is especially so if the channel breakout

bar is accompanied by large volume. Refer to Figure 5.14. Notice that price failed to

test the lower channel boundary, which was followed by a strong continuation of the

existing uptrend. Note also the large channel breakout bar at point A.

figure 5.45 Nested Channel Transitions on the 4‐Hour Chart of Silver.

Source: MetaTrader 4

figure 5.46 Nested Channel Transitions on the 4‐Hour Chart of Silver.

Source: MetaTrader 4