Sunday, April 12, 2015

Channels, Pennants, Wedge

Ways to draw channel

After draw either bottom line  (uptrend) or top line  (downtrend),

Method 1 : draw parallel line to the other side

Method 2 : link opposite side tops or bottom

Both are valid... I should observe price action when near the lines  (E. G. Any hammer, shooting star , piercing, engulfing patterns?)

Also confluence with key SD zones or flip zones?

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What to do when channel break?

E..G bear channel.. when bottom channel break. .  Find the next swing low and draw a parallel line w.r.t. to top line

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