NeeteshJain
Education

Educational 02: How To Draw Channels?

FX_IDC:EURINR   EURO / INDIAN RUPEE
This is the second education series on Channel (link of Education 01 given below),

In this educational post, I cover up points that validate a Channel and benefits of drawing a right channel.

Validation points are as follows:
Point 1: Two Parallel lines
Point 2: Higher High and Higher Lows in Uptrend and Vice-versa.
Point 3: Two compulsory touch points in order to draw correction trendline .

Three Touches are ideal also called "Three Touch Rule" (Will discuss further in next educational series)

What's Next:

1. How to identify trend with channels?
2. What is the right way to draw channels?
3. How to use Channels to find trades? ------------------------> NEXT
4. How to validate channel trades and manage risk?
5. Multi-time frame examples

Purpose: To educate retail traders like us, to make inform decisions and to become profitable in long run.

I WOULD APPRECIATE IF YOU COULD SHARE YOUR CHANNEL DRAWINGS IN COMMENT BELOW SO THAT I WOULD BE SURE THAT YOU FOLLOW WHAT IS BEEN POSTED AND WILL SET ME UP TO PROVIDE GREATER DETAILS IN NEXT ONE"

Thanks for your support,

Best Regards,
Neetesh

Related Ideas

Hey man,

Thanks for the above content!

Can you tell me if these channels for Sun Pharma are correct?

snapshot


Thanks in advance
+1 Reply
@akhiln, Yes, it works in every markets and in any time frame. It basically denotes trend in which market moves. The above drawn trendlines look good to me. Good Work. Regards
Reply
Another try with ACC daily.

http://imgur.com/a/dbieO
+2 Reply
@sunilhvo ACC chart's trendlines drawn correctly, now wait for confirmation of close below the trendline lines on daily chart to initiate a long selling position. If you would re-check the same ACC chart on 15 mins chart then you would feel that the trendlines are broken and might have initiated trade, that where most traders get stuck. So I would repeat that wait for confirmation on higher time frame to initiate a swing trade or holding positional trade.

I must say you're following the educational series well and practising well in your learning. It shall surely bring value in your trading experience, keep it up. Regards
Reply
Hi,

Great work from your side. Learners need to take benefit from your teaching.

Please check the chart http://imgur.com/a/1oVzx

My attempt to draw a channel and post a break out trade.

Your advice and help highly appreciable.

regards,

Sunil
Reply
@sunilhvo I have seen your chart and realised about my mistake that I used to do. What happens in short time frame that you get frequent false breakouts. Like a breakout in 15 mins chart, might not be a breakout in hourly or daily chart. I will clarify the definition of breakout here that price action breaking and closing above any resistance and support levels. In this it is always good to take confirmation on higher time frame. Look for closes on higher time frame, just don't take a trade once a breakout happens until you're sure about the close as well. I hope it answers your query, Regards
Reply
Example of NTPC to show How Powerful is Channel?
snapshot
Reply
Please check this Neetesh Bro. Thanks.
+1 Reply
NeeteshJain TOP QuestionMode
@Questionmode Well Drawn, I'm glad to see that you picked up very nicely. Good going.

Now you may practice in all time frames with any chart and post onto your your account to keep updated about results.
+1 Reply
QuestionMode NeeteshJain
Thank you so much :) Waiting for the next post :) Yeah i will draw and publish on my wall.
+1 Reply
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