Trading Articles

How To Trade Channels

Channels are one of the most easy Chart Patterns to identify and trade. This makes them great pattern for beginners. There are few common mistakes to avoid when trading channels, which will be described.

Appearance Of Pattern

Channel is built from two parallel trend lines with the same slope. The distance between the two lines should be visible - if the lines are too close it is not a channel but a pennant. A channel is only valid after at least 3 peaks in one trend line, and 2 peaks on the second trend line.

How To Trade Chart Patterns - Part 1

Chart Patterns are one of the oldest forms of Technical Analysis. They are present in price of countless commodities and stocks since the beginning of the 20th century - and their long-lasting abilities emphasize their power in predicting trends and providing strong trading signals.

However, despite the extensive coverage Chart Patterns have received, the knowledge of where and when to enter trades is still unknown to many traders. In this article you will learn the basics of trading, the Chartist Way.

Element 1: Support and Resistance lines

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