re: spiritsong it looks to me by overlaying those parallel...

re: spiritsong it looks to me by overlaying those parallel channel lines that the stock had reached a peak and was due a retrace and consolidation before its next leg up.
The chart attempts to pick support levels for the retrace be they channels or old tops ..these are areas that you may use for reentry or stoploss..

Does that give you a bit of an idea.

Its all guess work using historic technical principals..

It relies mainly on technical traders self fulfilling and influencing others.

Oh if you look up Andrews Pitchforks
you should find that the 50% midline is the point of most support or resistance
I marked that arrow on a possible Andrews support line

yes a 1000 wordz is never enough
cheers