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"
@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
akhiln
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Hey man,
Thanks for the above content!
Can you tell me if these channels for Sun Pharma are correct?
Thanks in advance
NeeteshJain
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@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
QuestionMode
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Please check this Neetesh Bro. Thanks.
NeeteshJain
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@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.
QuestionMode
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Thank you so much :) Waiting for the next post :) Yeah i will draw and publish on my wall.
VikasChhatwal
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Neetesh, first of all many thanks for sharing your learning. much appreciated, and respect. Quick question, when you are forming channels or patters at what frequency do you look at, 4hours or 1 day or 1 week or 1 month. Pls advise. I am a newbie and wish to understand and learn more from you.
NeeteshJain
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@VikasChhatwal The best part of channels, they can be used in all time frames. It is just a matter of your preference, you want higher targets, short targets etc. Thanks for generous appreciation. Regards
Investogrow
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good neetesh. This way for helping is really appreciated.
imgur.com/a/dbieO