Channeling is the act of preventing the price from returning to the daily 9 EMA.

As you can see, the channel being referred to is the Valley of the the Green River.

The arrows show the utilization of the Lower Guard Rail.

The Guard Rails are about 7/5x fluctuation size away from the Green River Band. (On Eur/USD this means 44.8 pips displacement of say the 207 EMA of LOWS and Highs on the example above – this is why the width changes a bit).

A soft reset is price making a discharge on the daily E-9.

A correction takes price back from having been outside the valley to the other end of a valley (Guard Rail).

A deep correction takes price back from having been outside the valley to the other end of a valley plus about 2 fluctuations (Guard Rail +- 60 odd pips).

An extra deep correction takes price back from having been outside the valley to the other end of a valley plus about 4+ fluctuations (Guard Rail +- 120 odd pips).

A channeling correction is the best entry of the established trend and there are two different kinds.

The Loneliness correction entry does not make it to the other end of the 30-sample hourly BB even at the end of the C leg. The entries are 1/2 size at the 12th hourly close and 1/2 size at the 16th hourly close.

The Disregard correction entry would cross outside the 30-sample hourly BB even at the end of the C leg. It would last at least 23 hours (to maybe 40) and the RSI2 gets taken to an extreme (87.5+ / 12.5-) by all terminals of the ABC legs.

Channeling Targets are: a lower low, 10 hours of buying / selling beyond the 8-hour EMO, a volatility breach reversal but a minimum a higher high / lower low.

A Magic Box is plotted on the 4H chart. There are two variations of it. One is an RSI2 sequence beyond a 200-sample higher high / lower low and its starting point is the high / low of the last extreme candle, the other is an outside the channel (Valley) Money Flow peak / troff in a desired range printing during an RSI2 extreme and is using the closing price for one end of the box. The box itself is 2x fulctuation size (64 pips).

A magic box, as further discussed in the previous blog entry may hold predictive clues based on price running away / penetrating by 1/3 or 1/2+ which would mean disctinctly different behavior. Also, when price isn’t running away immediately, there is a 56-hour incubation time limit (12x 4 hours).

Image below shows incubation counts (with 50%+ penetration).

A run away below

Another run away and the current count:

If price would not manage get through the halfway mark of the box within the next 8 hours (+1 count) the downside would be forfeited for good. If it does, after the Correction there would be a continuation lower.