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Classic channels

03-08-2017 | No Views : 987

Price channels are an important tool of technical analysis used by traders to determine the best places to buy and sell, and the price channels are drawn through the drawing of subsidies and resistors.
Price channels are divided into three types that we review together as follows:
  • Rising channel channel.
  • Hatta Price Channel.
  • The occasional channel.
  • Rising Channel:

To trade a bullish channel, you only need to draw a rising trend line between the price action and then draw a line parallel to the previous line to limit the price within a channel.
In the ascending channel the peaks are higher than the previous peaks and bottoms higher than the rising bottoms. Preferably the pair should be bought when moving within a rising channel while waiting for rebounds from the support.

The above example shows the GBP in a bullish channel on the hourly time frame. So it is preferable to buy sterling against selling the dollar to take advantage of those gains. And close the purchase when the price reaches the upper limit of the channel.

Trading on the support and resistance in the Forex Japanese candle shapes
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