Educational 02: How To Draw Channels?

16 set 2016

This is the second education series on Channel (link of Education 01 given below),

In this educational post, I cover up points that validate a Channel and benefits of drawing a right channel.

Validation points are as follows:
Point 1: Two Parallel lines
Point 2: Higher High and Higher Lows in Uptrend and Vice-versa.
Point 3: Two compulsory touch points in order to draw correction trendline.

Three Touches are ideal also called "Three Touch Rule" (Will discuss further in next educational series)

What's Next:

1. How to identify trend with channels?
2. What is the right way to draw channels?
3. How to use Channels to find trades? ------------------------> NEXT
4. How to validate channel trades and manage risk?
5. Multi-time frame examples

Purpose: To educate retail traders like us, to make inform decisions and to become profitable in long run.

I WOULD APPRECIATE IF YOU COULD SHARE YOUR CHANNEL DRAWINGS IN COMMENT BELOW SO THAT I WOULD BE SURE THAT YOU FOLLOW WHAT IS BEEN POSTED AND WILL SET ME UP TO PROVIDE GREATER DETAILS IN NEXT ONE"

Thanks for your support,

Best Regards,
Neetesh