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The double top resistance stod unchallenged for 10 years, finally it got broken. I show you this to put in perspective how massive bubbles are. It took AMZN ten years of growth to hit the same valuation as previously. The incredibly high valuation AMZN had in 1999 was all based on hype. Big ideas tend to create bug bubbles. Which is why I vary of stocks like BYND, it\u00b4s a big idea with an even bigger valuation. Same goes for cryptocurrencies. This does not mean I don\u00b4t trade them, as they can be very profitable.<\/p>\n
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The next picture I will show is between 2016 and late 2017. AMZN formed what is knows as a bullish channel. Where it bounces on support, but gets rejected at resistance. Identifing these channels can be very profitable, as one can increase shares substantially by participating in low-risk trades. We identify different trend lines but using our golden rules, three touches. Both the resistance and support have more than three touches confirming the trend line.<\/p>\n <\/p>\n <\/p>\n Something fascinating happened at the end of the channel, AMZN went parabolic. Even though it was in a bullish channel, increasing in value over time, it still managed to increase substantially. It was up more than 110% in less than a year. Most parabolic runups end in a substantial correction, the same is true in this case. AMZN fell 40%. The fascinating thing here is the fact that AMZN actually dropped down to the previous support level, before bouncing.<\/p>\n <\/p>\n<\/a><\/p>\n2016-2017<\/h4>\n
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