How To Draw Accurate Channels

[moonchild]

Channels are like teens lines but with double lines, one at the top acting like resistance and one at the bottom acting like support, to draw a channel all you have to is go to your tools on your chart and select the channels and then draw, make sure how you connect them is through wicks not the body of the candle.

One thing to note is breakouts when drawing channels, you have to connect them through wicks, so the line has to follow through the wicks and then make sure you have like three touches to get a perfect channel.

Another thing to observe is, how the channel is hitting the support and resistance, is the price hitting the top channel and the bottom channel, if yes, that means is a valid channel, but when price is playing around the center of the channel, it means the market is ranging.

Taking trades in channels is pretty much easy, you just wait out the price to get to the top or bottom of the channel and then you sell or buy depending on the direction, also watch out for fake outs or break outs, this can be done by understanding the candlesticks movement.

 

[Jack Reacher]

You have to be flexible in using leverage because it will keep you risk free. If you want to stay risk-free don’t use high leverage in your trading even though you have the option of using high leverage. Eurotrader offers traders a fair amount of leverage so traders can earn maximum profit.

 

[Asahi]

There are different approaches of trading like gambling, hedging, scalping, binary option, trading, long time trading, etc. Different traders have different approaches over these types. Eurotrader can be a perfect choice for all the above trading approaches. To ensure your smooth trading performance, the broker uses smart bridge technology.

 

[Mary Frederick]

Draw trend lines according to support and resistance levels because it will give you a pure market forecast. Alongside so, you can use fibonacchi too to have a better idea about the trends. Eurotrader allows applying of all indicators on their platform.