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