LEARNING TO DRAW CHANNELS ON CHARTS WILL IMPROVE YOUR TRADING PERFORMANCE AND POSSIBLY ASSIST IN ELIMINATING A BIG LOSS!
A traders long term success will depend on their ability to eliminate the "BIG LOSS" when considering the five outcomes to a trade!
Channel Drawing Techniques and Styles
My channel drawing style is different. I draw channels using regression lines following price trends as well.
The channel lines provide a great way to assist in position entry / exit
BELOW ARE EXAMPLES OF MY CHART STYLE
My channel drawing style evolved over the years to what it is today. Learning to trade and develop your own trading style is a journey and not an event.
Below is an illustration of the regression channels plus blackFLAG FTS. It provides clear guidance to Enter / Exit a trade. Below is an example of a Swing Trade.
The above entry started about $59 and dropped all the way to $52 in less than 24 hours.
Understanding Channels and How they can greatly help our trading decisions.
Below is an illustration of the way I used to draw my channels.
Reading Charts
Channels within charts are extremely helpful when trading. Technical analysis provides incredible insight as to what is to happen in the next few hours, days and even weeks.
