This is probably by far the best example of what a channel looks like.
A channel means, price could break up, which means we'd be able to get into a LONG position or it could mean it breaks down, which would indicate we jump into a SHORT position.
XAUUSD
is extremely volatile.
Volatile - Adjective
1. liable to change rapidly and unpredictably, especially for the worse.
"The market is becoming extremely volatile"
As you can see, this channel was indeed broken 16th November 11:00pm AEST when the price broke down over 2700 Pips. Where price stopped and rejected from 1865.xx and quickly rose back up into the channel again.
Pip - Acronym
1. Percentage in point(s)
"The market dropped 2700 pips!"
From what we can see and clearly identify in this chart tutorial is that 1865 is a price that's been visited and rejected from multiple times. Meaning a lot of big buy orders from Banks, Liquidity Pools and other firms are buying gold.
If we see a pull back or rejection at 1885 or the bottom of the channel: Bottom Black Line then we can confidently risk a trade to the middle of the channel 1892 ( Dotted black line ) or top of the channel, Upper Black Line. You can see the dotted line marked where it's been a price that's respected and disrespected, so if you did enter a position to LONG from the bottom, you could set your stoploss above your entry and ride it further if it shows price moving higher and move your TP to the top of the channel. If you see price starting to pull back you can either manually close your position or move your TP a little closer.
Right now, price is expected to fall and break the channel again. But we shall see what price does. Lock and load.
It's not about getting every pip, it's about making sure you're safely securing the positions you've analyzed continuously.
If you want more tutorials or would like me to do a video, show a thumbs up, throw a comment. Let me know.
I do enjoy constructive feedback.
A channel means, price could break up, which means we'd be able to get into a LONG position or it could mean it breaks down, which would indicate we jump into a SHORT position.
XAUUSD
is extremely volatile. Volatile - Adjective
1. liable to change rapidly and unpredictably, especially for the worse.
"The market is becoming extremely volatile"
As you can see, this channel was indeed broken 16th November 11:00pm AEST when the price broke down over 2700 Pips. Where price stopped and rejected from 1865.xx and quickly rose back up into the channel again.
Pip - Acronym
1. Percentage in point(s)
"The market dropped 2700 pips!"
From what we can see and clearly identify in this chart tutorial is that 1865 is a price that's been visited and rejected from multiple times. Meaning a lot of big buy orders from Banks, Liquidity Pools and other firms are buying gold.
If we see a pull back or rejection at 1885 or the bottom of the channel: Bottom Black Line then we can confidently risk a trade to the middle of the channel 1892 ( Dotted black line ) or top of the channel, Upper Black Line. You can see the dotted line marked where it's been a price that's respected and disrespected, so if you did enter a position to LONG from the bottom, you could set your stoploss above your entry and ride it further if it shows price moving higher and move your TP to the top of the channel. If you see price starting to pull back you can either manually close your position or move your TP a little closer.
Right now, price is expected to fall and break the channel again. But we shall see what price does. Lock and load.
It's not about getting every pip, it's about making sure you're safely securing the positions you've analyzed continuously.
If you want more tutorials or would like me to do a video, show a thumbs up, throw a comment. Let me know.
I do enjoy constructive feedback.
