What is channel Pattern & breakdown?
Scenario in which Price will tend to move in a channel between a trend line and a line parallel to the trend line. The later is called a channel line or a return line. When these are identified, they represent a clear exit point for an entry taken in the direction of the current trend. Aggressive traders may also use the channel line as an entry point for a trade against the trend, though trading against the trend is not advisable as those trades tend to carry a higher risk and tend to carry a higher failure rate than trades taken in the direction of the trend. Another significant signal is the failure of the price to reach the channel line. This could precede a break of the trend line and a possible reversal of the trend which results into channel breakdown
Present Case - Similar kind of breakdown is seen in ICICIPRULI after todays session with some good volumes.
Scenario in which Price will tend to move in a channel between a trend line and a line parallel to the trend line. The later is called a channel line or a return line. When these are identified, they represent a clear exit point for an entry taken in the direction of the current trend. Aggressive traders may also use the channel line as an entry point for a trade against the trend, though trading against the trend is not advisable as those trades tend to carry a higher risk and tend to carry a higher failure rate than trades taken in the direction of the trend. Another significant signal is the failure of the price to reach the channel line. This could precede a break of the trend line and a possible reversal of the trend which results into channel breakdown
Present Case - Similar kind of breakdown is seen in ICICIPRULI after todays session with some good volumes.
Comment:
People ignored this idea... see how beautifully it has corrected from the mentioned levels
