Channel Buster

Why the idea intuitively seems bullish, historically it has been an indication of late trend volatility or the spasms of a market in its last push.

 This is what a channel buster looks like on a longer and more important scale, that was also the top and price haven't recovered past that mark, they instead almost instantly fell to the bottom of the channel and at some point usually fall below the bottom of the channel.

Here's today's in a short term counter trend move.

When I was day trading, these were the kind of set ups that we'd run scans for, a stop can be put relatively close and they typically would see a quick reversal like you see in the chart above immediately following the break of the channel.