Trading channels can be drawn on charts to help see uptrends and downtrends in a stock, commodity, ETF, or forex pair.
Traders also use channels to identify potential buy and sell points, as well as set price targets and stop-loss points.
Ascending channels angle up during uptrends and descending channels slope downward in downtrends.
Other technical indicators, such as volume, can enhance the signals generated from trading channels.
How long the channel has lasted will help determine the trend's underlying strength.
Traders also use channels to identify potential buy and sell points, as well as set price targets and stop-loss points.
Ascending channels angle up during uptrends and descending channels slope downward in downtrends.
Other technical indicators, such as volume, can enhance the signals generated from trading channels.
How long the channel has lasted will help determine the trend's underlying strength.