WaveTalks - Nifty: Channel Trading Strategy

WaveTalks - Nifty: Channel Trading Strategy

There are three (3) types of channels:
1. Ascending Channel (higher highs and higher lows)
2. Descending Channel (lower highs and lower lows)
3. Horizontal Channel (ranging)

-------------------------
Ascending channel
-------------------------
An Ascending channel is a pattern formed from two upward trendlines drawn above and below a price representing resistance and support levels

The ascending channel is also known as a “rising channel” and “channel up“.

Ascending channel has a rectangle shape (Current Case – Nifty / 20th Oct2021)

---------------------
Trading Strategy
---------------------
As long as prices remain within the ascending channel, the upward trend in price can be expected to continue.

3 Supports shown as 17613 – 1st Support / 17864 – 2nd Support / 18209 - 3rd Support

When executing trades based on a trendline, it is important that the trendline is a valid one / How do you know it is valid – 2 points required to draw a trendline & 3rd point which is 18209 if falls & takes support then it confirms that the trendline is a valid one.

So, Any Buy or Long Trades should be executed with stops below the trendline so 18209 is an important level. Traders can keep 18200 level which is a psychological level.

-------------------------
Descending channel
-------------------------
A Descending channel is a pattern formed from two downward trendlines drawn above and below a price representing resistance and support levels.

The descending channel pattern is also known as a “falling channel” or “channel down“.

-------------------------
Horizontal Channel
-------------------------
A horizontal channel is a chart pattern formed from two parallel trendlines drawn above and below price representing resistance and support levels



--------------------------------------------------------------------------
The Last Idea - Bulls Yelling The Excitement - Gap Strategy
--------------------------------------------------------------------------
Hope you enjoyed selling at the tops 18600 for 18200 approx. Nifty Index took support in the 2nd Gap. Are You Ready for the Next Move?