Trading Tip #4 - TREND CHANNELS

Drawing a parallel line at the same angle of a trend creates a channel.

The upper trend line marks resistance & the lower trend line marks support.

Both the top/bottom of channels represent potential areas of support / resistance.

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Tips

Trend channels are just another tool in technical analysis which can be used to determine good places to buy or sell.

Trend channels with a negative slope (down) are considered bearish and those with a positive slope (up) are considered bullish.

Hints

Generally, the bottom of the trend channel is considered a buy zone while the top of the trend channel is considered a sell zone.

Like in drawing trend lines, 𝗗𝗢 𝗡𝗢𝗧 𝗘𝗩𝗘𝗥 force the price to the channels that you draw!