Let's recall my previous TA ideas and more👇🏻👇🏻👇🏻
Today we are talking about channels. Come on💪🏻
Technical analysis defines a “channel” as a corridor in which a price chart moves limited by the support line below and the resistance line above.
There are three types of channels:
📌sideway or range (flat, trendless)
The channel breaks, when the price breaks through either support or resistance.
Breaking resistance on the is a good signal to buy. For a the opposite is true.
With the side channel, the signal is less strong. If we break through support on the and resistance on the , we get a weak sell / buy signal (it is better to get confirmation from other indicators).
In addition, you can play inside the channel, observing two rules:
⭐the longer the price moves in the channel, the more likely it is to exit it;
⭐play better towards the main trend.
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