Trend extensions exercise

How to read the graph:
First point of interest here are the dotted lines. They are all made by connecting 2 or more points of interest represented by circles. We are extending them infinitely to create potential supports/resistances and our next triangles.

• The Red dotted lines give us our first triangle and allow us to identify the first breakout. Giving a buy signal.
  
• Once we breakout, we look for clues for the next triangle, which we get at the double top of the black triangle, which creates a nice neck. Giving a Sell signal.
  -The bottom of the Black triangle is obtained with the extension of the bottom of the red triangle. This helps us identify our next breakdown. Although a dangerous one because there is a major support (at the time). we should wait to break the major support to confirm.
  
• Then the next bottom confirms that we are in a bear market.
  
• We go and test the Major resistance (Previously major support) and fail. This nicely gives us 3 connected tops increasing the downtrend of the bull market and allowing us to make our Purple triangle.
  

Where to next?

• Well anyone who claims 20k or straight 5k is just playing bingo. We have numerous stages to go before we can say we are out of the woods which I tried to describe in the graph. All dotted lines can act as resistances or supports depending on which site you are.
  
• I prefer trading mid-long term, so I'm either looking for bear bottom bounce to buy in or confirmed bear ceiling breakout. There is plenty of money to be made in the middle, but I'm staying away from that.
  
  
  

Kommentar:

First Bear Resistance broken. We are now trading within the blue triangle.
Same rules apply:
-A bullish breakout will take us to our final test, the bear ceiling.
While a bear breakout will push us down. If this happens, I expect the resistance we just broke to act as support and/or the first old support. If we have a bear breakout of those, then we will test the bear bottom.