humble, this may or may not be of any help or interest.
You probably know that E&M is based on Schabacker's work (Edwards was Schabacker's brother-in-law and continued his work after Schabacker's death). Schabacker's work also includes a number of elements that originated with Wyckoff, particularly with regard to "trendlines", "supply lines", and "demand lines". But regardless of who did what when, the point of all this is to alert the trader to important changes in trend, much less outright reversal. Thus excessive pickiness defeats the purpose of drawing these lines in the first place.
Both Wyckoff and Schabacker noted that a trendline that is too steep cannot be sustained. Thus it may be the beginning of a primary or major trend, but one has to let all that play out in order to see what happens (there are such things as climax tops, V reversals, and 100% retracements). In this case, the first "trendline" is one of those unsustainable trends. When the first rush of buying wears off, price then settles into the "real" trend, which creates the conditions for your channel.
The first pullback after the line is broken is to 34. Price bounces back to nearly 38, then back to 34, then back to 38, so you have a "consolidative" channel. Price then drops below 34, which might indicate a reversal, but it instead rallies back above 34 almost immediately, confirming the significance of 34.
Then you get a new high at 41, which gives you your top line. The following reaction, which takes price back to around 34.5, gives you your bottom line, which is coincidentally parallel to the top line.
Momentum slows and price takes considerably longer to make the next high, but it turns at the channel line or supply line and makes a return trip to the bottom line or demand line.
Now as far as trading all of this is concerned, you first must read the chart from left to right, not right to left. Note that the highest volume on the way down from the test in June '04 takes place in July, and as price continues to fall, volume subsides. As price approaches support at 34, follow the bar with a buystop. If volume stays low and price reverses at or about 34, you're in the trade, long. If further selling kicks in and price doesn't rebound, you either are not stopped in at all or you're out with a minor loss.
As for the next reversal, note the increased volume as price pushes higher, then the subsidence when price tops out. You can't know, of course, if that's all there is, so you place your sell stop below the bars. Volume drops even further, then shoots up as price drops.
Next op comes when price approaches support at 34 again, and the same tactic is used. Note the volume decline in April '05 as price approaches 34. Follow the bars with a buystop, and when volume increases in May, you're back in on the long side.
There's more here, of course (the gray, dashed lines represent Sperandeo's approach), but, to cut to the chase, I would not yet go long here since the demand line -- or channel bottom -- has been broken and volume is so high. Support may be found here, but stronger support can be found at 34. At best I'd use a follow stop rather than jump right in (there's always the possibility that price might rally quickly back above the channel line, but then there's always the possibility that it won't). But if price gets all the way back to 34, that's a significant change in the momentum of the major trend, and if price doesn't reverse into a literal downtrend, it could go sideways for quite a while.
Incidentally, playing the volume during the last high is a little tricky, but may be off topic.
