Spydertrader's Jack Hershey Futures Trading Journal

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11-15-2007 ES Chart

- Spydertrader


Question about the RED channel that begins at around 13:30.

After its first volatility expansion is forms the small BLUE up channel. Then it leaves the downtrending RED channel by breaking the RTL.

After one bar closes outside the RED channel it appears the next bar closes at or slightly back inside the RED channel.

It then continues down and more VE are drawn.

Is the reason the RED channel is still in play is because of the FBO (closing back inside the channel)???

Is it a confirmed BO (2bars close outside the channel) to invalidate that channel?
 
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