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Hey, everybody, it’s Marina, the trader chick, and I’m going to talk a little bit about channeling markets. What are channeling markets? Basically, it is a sideways market. All right. So here we could see this is what is happening today, right now. Right. Since market’s open, the market has been really stuck and going back and forth, even a little bit erratic back and forth between these two important areas. So if you guys don’t know what this area is, this is the resistance area and this here is the support area.
So basically, what they are is literally understanding an area that the market is respeting over and over and over and over again. So if we actually go back a little bit the day before, you can also see here. This is from yesterday, right? This is in the late afternoon. It is an area that the market has now re-hit quite a few times over and over and over again. So right now, when we see such a narrow channel, it is really, really important to understand.
And the most important part of all is to stay out. Another very interesting thing to notice here. It’s becoming a wedge, right, that means that the market is slowly becoming more and more closed in. Now, if it breaks through here, it looks like it doesn’t really want to continue here, however, because we are in a channeling market. It is also really important to understand that we need to respect the support area. So this is what we normally do when we are seeing a timely market.
We sit it out and the wedge. I’m not a huge wedge trader. However, I do understand it, and it is another area that is being respected. And look at it. It’s hit it over and over and over again now for the past 20 minutes. And it’s not going up, and it’s kind of stuck here. So it might actually break through right now. But again, I’m not here to understand or say it is going to do that.
What I am here is to watch what is about to happen. So when I see such a strong. Support and resistance area is such a strong channel, I do prefer to sit it out and wait it out. So now it has technically broken through this wedge, right? Not completely yet, because. I’m still kind of hitting it here and there, as you could see, right? So, again, I’m not a huge wedge trader, but it is important to understand the areas