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.
All levels Mentioned in the chart.
P.S. These are my views, doesn't mean anyone should take random trades basis this. Please do your own analysis or consult a reliable adviser.
Moving in a Channel.
At Support of Lower Line of Channel.
Risk Reward Looks Favourable.
May Be Stock For June Series.
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.
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![PFC: [POSITIONAL SHORT] Channel bet](https://s3.tradingview.com/s/S6MjkVUe_mid.png "[POSITIONAL SHORT] Channel bet")
