Trend Channel Trading Guide
Hello, dear subscribers!
Today we are going to discuss a very important topic of the trend trading.
The trend channel is the most reliable tool of the trading during the trends.
Here is an example of the ascending trend channel. For novice traders it is recommended to execute trades only in the direction of a trend.
First of all we should determine the trend channel. The white part of a channel is the formation phase. Here we can find multiple bounces off the lower and upper channel's bands. As a result these band are defined.
The green part of a channel corresponds to the trading time. Let's consider an example of long positions execution. We can do it when the price bounced off the lower band. For the take profit level defining we recommend to use the significant resistance level, like a green line on the chart.
We should be conscious about the potential trend channel's breakout (red point). The breakouts can be fake, but if the price faced with the rejection (red area) for the attempts to re-enter the channel it can be the sign of the potential trend reverse, as we can see at this example.
We will continue this topic with other examples of trend channel if you are interested in it.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Today we are going to discuss a very important topic of the trend trading.
The trend channel is the most reliable tool of the trading during the trends.
Here is an example of the ascending trend channel. For novice traders it is recommended to execute trades only in the direction of a trend.
First of all we should determine the trend channel. The white part of a channel is the formation phase. Here we can find multiple bounces off the lower and upper channel's bands. As a result these band are defined.
The green part of a channel corresponds to the trading time. Let's consider an example of long positions execution. We can do it when the price bounced off the lower band. For the take profit level defining we recommend to use the significant resistance level, like a green line on the chart.
We should be conscious about the potential trend channel's breakout (red point). The breakouts can be fake, but if the price faced with the rejection (red area) for the attempts to re-enter the channel it can be the sign of the potential trend reverse, as we can see at this example.
We will continue this topic with other examples of trend channel if you are interested in it.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
We make copy trading fair with high-water mark protection, empower manual traders with our smart terminal, and easily convert TradingView alerts into CEX orders with easy-to-use bots
Learn more at
skyrexio.com
Learn more at
skyrexio.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.