I believe price moves within a trend channel which is make up of a resistence and a support, a simple way to think is whenever price moves within a trend channel, it represent a BB buying/selling action, and when the price moves into another trend channel, it represent another BB comes into picture and has controlled the game.
Beside moving within a trend channel, price can also move withtin a chart pattern such as a rising wedges or a ascending triangle, this could also represent another BB coming into a picture but is competing with other BBs.
so based on the above rules i describe, using the chart as an example,
a purple BB is well controlling the prices, so it moves within the purple trendline channel, rebound off the support, and hitting the resistence before coming down, observing well within the trendline channel range.,
but a blue BB comes into place and started selling, so the prices break the support and proceed to trend within the blue trendline channel, repeating the same price action, rebounding off support and hitting resistence,
next the prices started deviate from its usual blue channel and moves within an pennant pattern, which means the purple BB is back into the picture or another BB is entered the fray, trying to fight off the purple BB and gain control of the counter.
Possible result : A or B??
if A: it will breakout from the green pennat and purple BB will take back control, and prices SHOULD move back into the purple trend channel or another new trend channel
if B: it will breakdown from the support of the green pennant and the blue BB managed to re-seize control.
i hope from this brief description, you guys will be able to understand my charts to assist you in your trading, or follow this concept in analyszing your chart.
Charts and trendlines are based on estimation aka aga aga one.. so there could be a fake breakout, it could be a fake breakdown, what matter most is how the candle behave when it is at or near the support/resistence level.
good luck in your trading..
For a more detailed technical understanding of trendline/trend channel
http://irrational-exuberance-comes-home.blogspot.com/2010/11/using-trendline-and-trend-channel.html
or
http://newsletter.neoticker.com/2006/10/12/using-trendline-and-trend-channel/
