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figUre 13.49 A Rising Channel on the 4‐Hour Chart of EURUSD.
Source: MetaTrader 4

figUre 13.50 A Rising Channel on the 4‐Hour Chart of EURUSD.
Source: MetaTrader 4

at Point B, with a sharp retracement. Another uptrend line was drawn based on
Points D and F, and a return line projected from Point B. Again, notice how price
reacted to the return line BE at Point B.
In Figure 13.52, price reacted at a rising channel’s return line at Point X,
which coincided with a 161.8 percent Fibonacci projection level. Notice that the
cycle‐tuned stochastic is also at overbought. These three conditions tend to pro-
duce a more reliable bearish reaction at Point X.