Resources for Forex Trading
FOREX TRENDS LINES
Page 12
Channel Trading:
Parallel channels are one of the most common chart patterns found on the charts. They provide the trader with excellent opportunities for high probability trade setups regardless if the market is in a trending or a non-trending state and are not timeframe dependant.
Horizontal channels on the other hand are known as 'trading ranges' or 'consolidation' which we went through in detail prior to this section. No matter what the current condition of the market may be, there are always parallel channels present whether they be horizontal, upwards (ascending) or downwards (descending) as displayed in the examples below.
Parallel channels can be defined as soon as you find two top and two bottoms (they are marked with yellow boxes on the chart).As soon as you find such channel, you can use the following trading strategy: you must wait until the price on the chart is close to either the upper or lower trend line in order to determine the setup. Check out the Descending channel below.
