XRPUSD 1H HORIZONTAL PRICE CHANNEL PATTERN

Step 1 - Find a descending, ascending or horizontal price channel pattern
The horizontal Price Channel pattern can be defined by two horizontal lines as opposed to using
trendlines . Basically, when we have a consolidation or ranging zone where the price simply
bounces on and off between the two lines – support and resistance .
Using a Channel trading strategy you can easily identify trade ideas for big profits.
Step #2: Wait for a Swing High to fail to reach the top of the Price Channel pattern
In the case of an ascending or upward Price Channel pattern the first warning signal that the
price will fail to trade within the boundaries set by the Price Channel Pattern presents itself
when the last swing high point fails to reach the top of the channel.
Only our Price Channel trading strategy makes use of this powerful price reading technique
because our team at Trading Strategy Guide has developed the “early signs” of Price Channel
breakout.
The fail attempt to test again the top of the Price Channel is a sign of price weakness which is
confirmed when the price also fails to bounce off the Price Channel bottom and breaks it
instead.
Note* The more times a swing High fails to reach the top of the Price Channel pattern the
better the trade setup
Step #3: Wait for the Price Channel breakout and for breakout confirmation
One of the worst mistakes traders does when trading Price Channel patterns is that they don’t
wait for confirmation signal when the Price Channel breakout happens.
You should always wait for breakout confirmation!
What do we mean by breakout confirmation?
In simple terms, we want the breakout candle to post a close below the Price Channel bottom to
confirm the breakout.
So we don’t just wait for the Price Channel breakout, but instead, we also want to see the
breakout candle closing below the Price Channel pattern. This is a very simple way to avoid
many of the false breakout signals.
Note* The breakout candle needs to be a big decisive looking candle, but it’s not mandatory
Step #4: Sell right at the Breakout Candle Closing Price
The Price Channel trading strategy uses a very simple trade entry technique.
A sell order is triggered at the breakout candle closing price.
The Price Channel breakout technique provides us with an entry signal that you can be confident
executing the trade.
Step #5: Take Profit 1 at the 50%/78.6% Fibonacci Retracement of the previous trend, Take Profit 2 at
the starting point OF Fib Retracement (100% fIB)
The Price Channel trading strategy employs multiple entry techniques.
Our first potential take profit zone is the 50%/78.6% Fibonacci retracement of the previous trend.
What do we mean by the previous trend?
The trend that was contained within the Price Channel pattern. So plot the Fibonacci
retracement indicator between the high and the low of the price channel or trend.xrpusd 1h hori