A channel can be used as an entry pattern for the continuation of an established trend, as part of a trend following strategy. A channel forms when price action is controlled by 2 parallel, sloping lines and has tested each of these lines at least twice. An ascending channel indicates a bullish trend, with the support line connecting consecutive higher lows and the resistance line connecting consecutive higher highs.
A descending channel indicates a bearish trend, with the support line connecting consecutive lower lows and the resistance line connecting consecutive lower highs. Generally speaking, the support line of an ascending channel is a buy zone and the resistance line of a descending channel is a sell zone, while the opposing lines are profit-taking zones. A common stop level lies on the other side of the buy or sell zone. Conservative traders may look for additional confirmation before entering a trade. TradingView has a smart drawing tool that allows users to visually identify channels on a chart.
POSITIONAL TRADE IN HDFC BANK
DOUBLE BOTTOM BREAKOUT IN HOURLY CHART
PLUS DOWNWARD CHANNEL BREAKOUT
AUGUST FUTURES
BUY@2110.5
STOP@2099.5
TARGET@2125
LOT:500
QTY:2
Moving in Downward Channel.
Break Down in Channel.
Below 200 EMA.
Other Details Mentioned In Chart.
Positional View For Educational Purpose Only.
Please Consult Your Financial Advisor Before Taking Any Decision.
I am not SEBI Registered Financial Advisor.
JSWSTEEL has been moving in a channel for years. Made latest new lifetime high in june. After a good arc, its back to test the highs.
Awaiting a breakout/Reversal
a clear-cut break down of rising channel line see in sbin . In daily charts the market has been forming rising channel line but today there is been a break out of the lower channel line we can expect some down move
In weekly/daily, price just bounced from ascending channel support.
Also price broke out of falling wedge with good volume, also price closed above upper BB.
https://www.tradingview.com/x/DVNch0Np/
sl - 450, tgt1 - 545, tgt2 - 580
ZEEL has formed an doji/harami pattern inside descending channel. Can go either way.
Long idea -
Entry - 506.4
Target - 515
SL - 499.15
Short idea -
Entry - 499.15
Target - 487.35
SL - 506.4
INFIBEAM has been moving in a sharp up channel. Made lifetime highs in Nov and a big arc in 6 months, retesting the lifetime highs again. Awaiting a breakout or reversal.
There is a nice confluence of Harmonic Bat pattern and Parallel Channel. The stock has formed a bearish engulfing today showing the weakness. One can sell the stock as the details given below
Entry 91.50
SL 96.50
Target 82.5
RR ratio 1.80
Disclaimer : All ideas are my personnel view. Please take financial consultancy for trading decision.
HI ALL today came across a chart pattern on bajajfinance it is forming channel or box patterns on daily charts within a range of 2150 to 2160 levels can expect some break out on the upper or lower side if price crosses these levels
