Buying or Shorting a Horizontal Channel ?
Horizontal channels provide a clear and systematic way to trade by providing buy and sell points. Here are the trading rules for entering long or short positions.
When the price hits the top of the channel, sell your existing long position and/or take a short position.
When the price is in the middle of the channel, do nothing if you have no trades open, or hold onto your current trades.
When the price hits the bottom of the channel, cover your existing short position and/or take a long position.
Take long on when breakout happens.
Go short on breakdown.
Disclaimer: All charts are purely for educational and information purpose only. Invest or Trade at your own risk.