moonchild
VIP Contributor
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.
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.