Well your upper trend line did seem to mark the high for today rather well. How long do you think the price will hold between your top and bottom lines?
Not an expert by anymeans but generally speaking the pattern is "over" once the upper/lower resistance levels are broken. Notice how the lines are angled and indicate (in this case) a downtrend? The idea is that the price will stay within those bounds during the downtrend. Resistance levels adjusted as time goes on.
Also please be aware that these are generally guidelines, the over-all pattern of TA is generally more accurate then the exact numbers... a 100 resistance line in TA could actually be between at 85-115... so you have to be patient and careful when following the TA indicators. The "tighter" or you try and play the ups/downs the more risk/loss of opportunity you could take.
I find it helps to think of price changes in % to keep things in perspective and to steady your hand a bit. OMG it went up $10... well that is less then 10%... do you JUMP on a 10% must not miss sale or a 30%? This view helps me from not panicking as much.
Thanks for the explanation, makes sense and confirms what I assumed, also good advice about the % vs $ outlook and I'm sure that's why some like to use log charts.
I guess I should have worded my question better. I was wondering how long he thought the trend would remain unbroken. The range between his top and bottom line (would this be called the channel?) is so large that on a small time scale it's quite likely the price will not break either line.
You say the price should stay within those bounds during the downtrend, but any idea how long the trend is suspected to last?
Are there other TA methods to determine this within some range of likelihood?